Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall is the expert who has anticipated bitcoin milestones in the past predicts that the value of the cryptocurrency will exceed 100,000 euros and explains why it will then fall by 90%.

Adrian Zduńczyk is part of the pool of bitcoin experts who expect the world's largest cryptocurrency to be listed at the 6-digit level very soon.

He calls himself a technical market analyst and is the founder and CEO of The Birb Nest, a subscription trading community. He is also co-founder of yellowblock_io, another cryptocurrency news and education platform. He is widely known on Twitter as @crypto_birb. His tweets with daily charts and technical analysis for bitcoin investors have amassed nearly 330,000 followers.

Zduńczyk monitors the price of bitcoin on a daily basis and predicts oscillations and their impacts in the short and long term. On September 1, 2020, he anticipated that bitcoin would hit an all-time high of more than $ 14,600 (12,380 euros at the current exchange rate) after having hovered around $ 11,000 for several months. Bitcoin reached this threshold in early November last year and then its value tripled in the following months.

Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall

Although this expert focuses mainly on the short term, he also has an eye on the evolution of bitcoin in the remainder of 2021. Therefore, he has told that the price of cryptocurrency will reach a whopping 100,000 or 120,000 dollars by the end of the year. It's not the only one: JPMorgan analysts and expert Mike Novogratz, among others, have also said they expect a similar move.

Although that's an exciting prospect for bitcoin holders, there's a big but. Zduńczyk estimates that this threshold will only be maintained for a few days. Afterwards, bitcoin will enter a downtrend and the cryptocurrency will lose between 80% and 90% of its value, a range that, according to him, reflects patterns that have been taking place since 2010.

In mid-December 2017, bitcoin's price hit an all-time high of about $ 20,000 and remained at that level for about 3 days before a fall that cut its value in a year by more than 80%.

Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall

However, Zduńczyk points out that the further the price prediction is, the less accurate it will be.

Zduńczyk uses the currency's liquid index (BLX), which determines a US dollar price point for a bitcoin at 30-second intervals, to chart the cryptocurrency's future trend line. The index takes into account qualitative and quantitative indicators such as the stability and quality of the composition and volume of market participants to calculate a fair overall value for the price.

It also uses historical patterns to draw parallels. Noting that bitcoin is in the fourth bull market since its inception, and based on previous trends, he believes that the bullish trend is far from ending in the current cycle. This is because the fourth trimester is usually more volatile than the third.

"I would wait for a couple of months of consolidation, a sideways trend, perhaps in the form of a symmetrical triangle or any other chart pattern, to finally in the fourth quarter reach a real bullish break to give the final momentum," Zduńczyk explained.

Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall

The momentum that could bring bitcoin to a whopping six figures would be sparked by what he envisions as its adoption by large corporations like Amazon and Google, which could accept the asset as payment for products. This will cause a snowball effect in which some will react to the news and others, to the sudden uptrend of the price.

"Due to its irrational growth in a short period of time, it tends to get many investors interested suddenly. Most people invest in bitcoin or Tesla or Apple stocks usually at peaks, " Zduńczyk said.

However, the six-figure break is staggered because that additional zero is a kind of psychological anchor.

"Based on technical projections, the area between $ 90,000 and $ 120,000 does seem likely with the main stop close to 100,000 dollars as psychological resistance", has detailed this expert.

Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall

Although this would be a 204% increase over the current price of bitcoin, located at about $ 40,000, this analyst warns investors not to be too confident. Historically, bitcoin forms these maximum bubbles that are known as blow-off tops in which the value explodes only to suffer a sharp drop below.

"In general, it usually takes hours to days, definitely not months. So I would expect a day or two of very strong euphoria, where you could see a very rapid rise and then, right after, a very sharp drop, " Zduńczyk said.

This decline could be 80% or 90% and start with an initial fall of 30% to 50% followed by a gradual decline continued during the year or throughout 2022, he added.

Long-term prospects aside, it is also important to understand short-term chart trends because they will act as early signals for final momentum.

Bitcoin Adrian Zdunczyk predicts cryptocurrency rise fall

Zduńczyk notes that the current local resistance line (a level above which sellers would outperform buyers) is around $ 43,000.

When this weekly or monthly cap is broken, there is likely to be a period of tug-of-war between $ 40,000 and $ 50,000 until bitcoin's all-time high of around $ 65,000 is broken. Once the last resistance point is broken, Zduńczyk believes that bitcoin will continue its path upwards, with a maximum price point of $ 120,000.