A closely-followed crypto trader is predicting a parabolic rally for Bitcoin this year, even though the Bitcoin price has been on the decline lately.
In a new strategy post, Credible told his 328,700 Twitter followers that many Bitcoin traders expect BTC to continue correcting and lower the range to $28,000.
“As we have reached these highs ($69,000), the prospects for reaching these lows are very reasonable… And even if we were to make such a move, our structure would remain intact. Still a high, a low, a higher high [ve] We have a higher low point. I expected more.”
While the crypto analyst believes a move to $28,000 is possible, he sees Bitcoin taking another path. thinks.
“In strong uptrends we tend to see higher lows form and this is how we fail to reach key levels that normally seem so obvious during aggressive uptrends. Again in 2017, there are many examples of this.”
According to the crypto strategist, despite the lack of bullish momentum, Bitcoin may be preparing for a final move above $100,000.
“I’m expecting $100,000 for the fifth wave, and when it’s complete, it could be over $100,000… I think realistically we’ll probably hit somewhere between $100,000 and $200,000…
But the point is, these lows accumulating, we don’t need to take them now. We can continue very well for the fifth wave.”
Credible is a popular practitioner of Elliott Wave theory, an approach to technical analysis that predicts future price action by following crowd psychology, which tends to manifest in waves. According to the theory, the fifth wave is the last rally of an uptrend.
As for how Bitcoin can rekindle its bullish momentum, Credible says that traders waiting for the Bitcoin price to drop to $28,000 will push the rally to $100,000 once they realize it might not fall where they want it to.
“The way we get these very crazy rallies that are taking longer than we expected is because people have to chase the price upwards because they are not getting the ideal entries they want.… Often times, this is the way we get the parabolic advances and aggressive rallies are the expectation (drops to $28,000) for this type of move. ) is that people waiting on the sidelines don’t get it in the end.
When we have a breakout, they have to buy higher, and such aggressive buying, chasing prices is what drives these irrational moves up.”
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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.