Bitcoin’s bubble has officially burst.
The cryptocurrency plunged nearly 20% over the weekend, putting in a low of $1,758 a coin before recouping some of those losses. It’s currently trading at $2,048.
At the low point, bitcoin was down more than 40% from its record high of about $3,000, set on June 12.
The weekend plunge pushed the cryptocurrency below the target of Sheba Jafari, the head of technical strategy at Goldman Sachs. In early July, Jafari put out a note saying bitcoin was “still in a corrective 4th wave” that “shouldn’t go much further than 1,857.”
Jafari wasn’t the only one who thought bitcoin was getting ahead of itself.
Tech billionaire Mark Cuban suggested bitcoin was in a "bubble." Back on June 6, just before the cryptocurrenct put in its record high, Cuban tweeted, "I think it's in a bubble. I just don't know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble."
Additionally, Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, noted bitcoin was in a bubble unlike any we had ever seen before.
As for where bitcoin will go from here, Jafari's July 3 note suggested that after a big drop, a fifth wave would take bitcoin to record highs. "From current levels, this has a minimum target that goes out to 3,212 (if equal to the length of wave I)," Jafari wrote. "There's potential to extend as far as 3,915 (if 1.618 times the length of wave I). It just might take time to get there."
Even with the recent plunge, bitcoin is still up 113% in 2017.
