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Expert trader says crypto market is due for a DotCom-type washout

Looking back over 20 years and reviewing the dot-com bubble, many experts argue that it is analogous to today’s cryptocurrency market.

Chief market strategist at Gareth Soloway is one of those who have compared the current crypto market with the dot-com era, expecting it to go through the same kind of washout the DotCom companies had.

The market is following a similar pattern that the DotCom era companies did and is due to go through the “washout”, just like those companies had experienced back in the late 1990s, the expert trader said in an interview with Heresy Financial on March 23.

“There are more than 15,000 cryptocurrencies right now and there’s no need for them. There needs to be a washout just like the dot-coms in the late 90s, early 2000s. From there, I think you’ll get the best of the breed to rise.”

Although the most popular cryptocurrencies, including Bitcoin (BTC), have been experiencing upward movements in the past few days, Soloway warned viewers to look at the bigger picture:

“Don’t let it fool you, folks. This is a classic bear flag pattern.”

He explained that this pattern was demonstrated by “the big move from $69,000 down to $33,000 and then just consolidating roughly in the band between $40,000 and $47,000.”

The strongest crypto to emerge even stronger?

Despite the bear flag pattern, he expressed optimism in the long run for the crypto’s strongest players. Answering the host’s question about his vision of Bitcoin in the future, he said that:

“I’m super bullish. (…) I think it’s going to $500.000, a $1 million. I just think you have to flush out all the crap first. (…) It’s very Darwinian in that way, where the strongest will survive, and there’s no doubt that Bitcoin has become kind of the strongest one that most of the big money is playing.”

To drive his point home, Soloway compared Bitcoin’s price movements since early 2021 to Amazon’s (NASDAQ: AMZN) chart from the late 1990s – early 2000s that clearly shows the giant’s “bubble and bust” pattern. 

“You can see that the pattern is almost identical to Bitcoin – a big move up, a big correction, a big move up, taking out the high, which is what Bitcoin did in November 2021. Then look at the collapse, [with Amazon] bottoming from $112 to $6. If that happens to Bitcoin, I think it could be a $4000 price target.”

After the “do-not-lose-hope” period, the strongest of the dot-com era companies started taking a sharp upward turn, which is what he believes might happen to Bitcoin, as well.

As Finbold reported, Soloway had expressed these views before, affirming them time and again, as he did in the recent interview.

Bitcoin price analysis

By press time, the price of Bitcoin was $42,213, recording a 4.57% increase from seven days before when it traded at $40,370.

Seven-day Bitcoin price. Source: CoinMarketCap

Over the last 24 hours, the popular cryptocurrency had recorded a slight reduction in price, trading 1.37% lower compared to the day before, according to CoinMarketCap data. 

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