Benzinga - A cryptocurrency trader expects a severe Bitcoin (CRYPTO: BTC) drop following a potential new all-time high, issuing an alert to his substantial online audience.
What Happened: Operating under the pseudonym Credible Crypto, the trader shared his prediction with his 361,800 followers on X, reported The Daily Hodl.
He noted that Bitcoin has faced three to four significant crashes after parabolic rallies in the past.
“For every action, there is an equal and opposite reaction,” he stated, suggesting a steep rise to $100,000 or above would likely be followed by a considerable downturn.
"For every action, there is an equal and opposite reaction."This applies to markets too.
If you think we are going to have a parabolic rally to 100k+ in a relatively short period of time then you must accept that there will be an equally aggressive correction that follows.…
— CrediBULL Crypto (@CredibleCrypto) December 27, 2023
He explained that parabolic rallies and devastating crashes often go hand in hand due to market greed and irrational exuberance.
See Also: ‘Dogecoin Killer’ Shiba Inu Burn Rate Spikes Over 5000%: Analyst Points To ‘Massive Withdrawal’ Of 8 Tril
Credible Crypto anticipates Bitcoin hitting new all-time highs before undergoing a massive correction. He made this forecast while Bitcoin was trading at $43,323, an increase of 160% since 2023 began but still 37% below its all-time high in November 2021.
Why It Matters: Bitcoin’s price surge in 2023 has been notable, with analysts previously predicting a correction post-Spot ETF approval. In December, Bitcoin’s market capitalization saw a 164% surge, an increase of $539 billion, largely due to anticipation of Bitcoin ETF approval.
The cryptocurrency hit multiple annual highs in 2023, reaching $29,000 in March and $30,000 in June when BlackRock filed for a spot Bitcoin ETF. This led to predictions of a potential considerable drop in Bitcoin’s value following ETF approval.
Read Next: ‘Promising Sign For DOGE:’ Analyst Says Steady Increase In Dogecoin Addresses Could Set Stage For Rally
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