A crypto analyst who says Bitcoin is heading to $65,000 by 2021 just issued a new warning that BTC bears may make a strong comeback in the short term.
In a new report on Seeking Alpha, the founder of ElliottWaveTrader.net, Avi Gilburt, says more pullbacks are needed in order to confirm the next big bull run has begun. Traders use Elliott Wave theory, a method of market analysis, to predict future price action by identifying crowd psychology that manifest in waves.
“Recently, we have seen this market overheat, barreling upward with nothing but the smallest correction. If you are familiar with Elliott Wave, you know that an impulsive move signaling the beginning of a bull market comes in the form of five waves. Unfortunately, in the most clear view of this rally off our December low, we only have three waves. So, sometimes, extending beyond standard targets may suggest something less bullish in the bigger picture.
Gilburt says he’s now looking for a fourth wave that would likely bring Bitcoin well below the $6,000 mark.
Therefore, for us to remain bullish, we need to see a clear corrective pullback that presents as our 4th wave off the December lows, followed by a fifth wave higher in order to eliminate the risk that the bear may return for one final flush. For a bullish structure to be reliable, we now need to see a wave 4 corrective pullback that holds over support at $5,330 and then rally over $10K. Conversely, if we drop through the $5,330 level in an impulsive structure, the prospects of a lower low in the complex rise significantly.”
Gilburt says the warning signs could turn out to be an overabundance of caution, and notes that anything is possible, especially in the volatile crypto market.
Right now, Bitcoin is up 4.01% at $8,032 according to COIN360. Ethereum is up 4.69% at $256.02 and XRP is up 3.03% at $0.4007.
Technical analysts at large are reading mixed signals for Bitcoin, with rising optimism for Ethereum.
Blockonomi – XRP primed to climb above $0.40 and $0.42
Seeking Alpha – Long-term buying volumes point to slower, more sustained upside
FXStreet – LTC/USD rangebound with bullish bias
Bitcoin Cash, EOS, Binance Coin, Sellar, Cardano, Tron
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