Bitcoin needs to crash to this level before skyrocketing to $120k – Clem Chambers

New York (May 24)  Bitcoin's trading pattern is "boom, bubble, bust," and right now, we are in a bust, with prices likely to go a lot lower before eventually surging to new record highs, said Clem Chambers of InvestorsHub.

The popular cryptocurrency is in the middle of a major correction that could see prices touch as low as $20,000. The drop will be followed by "a crypto winter" — a period when prices remain stagnant, Chambers told David Lin, anchor for Kitco News.

"In the short term, I'm really bearish. And then, in the long-term, I'm really bullish. If you look at bitcoin's chart from the last decade, it goes, boom, bubble, bust, boom, bubble, bust. And so, in the short term, we are in a bust, and it's going to go way lower. And then it's going to be a crypto winter, like last time, and then bang, it's going to go through the roof again, as it did in 2017," Chambers said.

Once prices are ready to climb again, bitcoin could be looking at new all-time highs of $120,000, he added.

What really drives bitcoin's four-year bull cycles is the process known as halving.

"This is when the miners' rewards halve. So the supply of new coins halves, and that pushes the price up. Now, when the price goes up, everybody gets FOMO and piles in, and it goes through the roof," Chambers said. "The next bubble is going to go to $120,000, but not before going back to $10,000- $20,000."

KitcoNews