The widely followed crypto strategist who accurately predicted the 2018 declines of the Bitcoin (BTC) bear market said that a strong BTC bounce is in sight.
Using the alias Smart Contracter, the analyst told his 207,200 Twitter followers that Bitcoin is in the middle of a five-wave downtrend. According to the crypto strategist, it is possible for BTC to ignite its new rally this week with a target of around $45,000.
“BTC is currently in a five wave bearish phase on the 4-hour chart, so a nice relief rally to $45,000 is expected in the coming days.”
While the crypto strategist is optimistic about Bitcoin, he warns traders that the rally will be short-lived.
“Further downside, $37,000 – $38,000 new key support.”
Smart Contracter’s analysis is based on Elliott Wave theory. The theory in question is a technical analysis that emerges in waves and predicts future price action by following crowd psychology. According to the theory, an asset goes through a five-wave cycle before reversing a major trend.
Smart Contracter also says it will start its corrective action for Bitcoin once market sentiment turns bullish. guesses.
“We had the downfall. Now comes the quick bounce that turbo-buzzed everyone around $44,000 again… Bitcoin looks really nice right now for a 15% bounce on the daily chart, winning our long positions before we even got a wick. Just don’t hold it too long in my opinion.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.