Todd Gordon, founder of TradingAnalysis.com, has argued that the next price target for the flagship cryptocurrency bitcoin is “about $74,000” based on the Elliott Wave theory.
While speaking on CNBC’s “Trading Nation,” Gordon noted that it’s hard to give BTC a fundamental value “because there’s pretty much a finite supply,” as only 21 million bitcoins will ever be produced. In a bid to see where the price of BTC could be headed, Gordon used Elliott Wave theory.
- It’s a wonderful way to value crypto because Elliott wave is meant to detect the herding mentality and the emotions driving the price — fear and greed — and it creates very recognizable patterns.
Gordon added that the theory is based “on the idea that there are five waves in a primary trend, three [up]trends and two intervening corrections.” The first wave he pointed to occurred in 2014 and was followed by a decline in 2015 and an uptrend through 2018.
The fourth wave, he said, formed “sort of a sideways triangle” over the last two years, and the fifth one could be the one that takes BTC’s price over its previous all-time high. The theory reportedly predicts a “reliable relationship” between the percent distance traveled in the first wave and the percent change in the fifth wave. In 2014, BTC’s price rallied 658%.
The technical trader concluded:
I can’t believe I’m going to go out on CNBC and say this, but it’s about 74,000. The Elliott wave goes very well with … Fibonacci multiples. If it does want to fall short, it can go to 61% of that target, which is only at 34,000.
At press time, CryptoCompare data shows bitcoin is trading at $19,150 after moving up over 160% year-to-date. On CNBC Mark Tepper, president and CEO of Strategic Wealth Partners, also made bullish BTC price predictions.
The CEO said that he had, until recently, treated bitcoin as a speculative investment that represented a fraction of his portfolio. His approach changed once PayPal and other publicly-traded companies started entering the cryptocurrency space.
Per his words, a lack of adoption held him back, but adoption is now happening:
But … adoption’s happening and those users, those PayPal and Square users, they’re buying more bitcoin than what’s actually hitting the market on a daily basis.
Tepper compared bitcoin to Tesla’s performance, pointing out Tesla is up over 500% this year, and adding BTC could “potentially be the Tesla of 2021” to get to $100,000 by the end of next year.
Featured image via Pixabay.