Bitcoin’s price had once again risen beyond $22,000 for a short period, thanks to a stunning rebound trend. Although this is a positive development for the digital asset, which has experienced numerous drops, things are not entirely rosy for the cryptocurrency.
There are certain levels that bitcoin must sustain above to keep its high value given the market’s ongoing adverse trend. Otherwise, it runs the risk of dropping more than 85% from its peak. A well-known cryptocurrency expert who correctly predicted Bitcoin’s 2018 bottom thinks that both BTC and Ethereum (ETH) are poised for significant price increases.
On the four-hour chart, Bitcoin has finished a five-wave advance, according to the pseudonymous analyst Smart Contracter, and is now most likely ready for a corrective move back down to the $20,000 mark.
Based on crowd psychology that tends to emerge in waves, the Elliott Wave theory is a sophisticated technical analysis method that seeks to forecast future price action. The theory states that an asset’s trend will change when a five-wave rally is finished. Despite being short-term bearish on BTC, Smart Contracter thinks Bitcoin may be forming a cycle bottom.
“I can also see a higher timeframe weekly swing failure pattern/double bottom forming too… At minimum, [I’m targeting] the range highs on weekly around the $24,000-$25,000 mark.”
The important Ethereum merge is scheduled for Thursday, and investors may witness significant price volatility then. Additionally, Ethereum has been stifled by pre-existing economic concerns; with the release of August inflation statistics on Tuesday, it fell below $1,600. The top smart contract platform, Ethereum, is expected to see a significant setback before putting together a rapid rally toward its aim of $2,400, according to Smart Contractor.
“The ETH C-wave down is now probably underway, correcting the five-wave rise from the July lows.”
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