A crypto strategist known for accurately predicting the Bitcoin bear market bottom in 2018 says he believes the top cryptocurrency is poised for a significant correction as BTC continues to move in tandem with the stock market.
The pseudonymous analyst known as Smart Contracter says he is short-term bearish on both Bitcoin and stocks.
“Equities and BTC both look cooked. This is not re-accumulation, sorry.”
The trader’s current sentiments align with his previous analysis that Bitcoin and the S&P 500 have been “highly correlated” since the coronavirus pandemic reared its ugly head in February. He believes that both asset classes are in the midst of an ABC corrective wave, which is an Elliott Wave principle suggesting a temporary retracement in a bullish market. Once the pattern is complete, the asset will likely resume its uptrend.
According to Smart Contracter, Bitcoin is en route to a generational bottom at $7,000 while the S&P 500 is likely headed to 2,600. After wave B of the pattern is complete, he expects BTC to ignite wave C of the pattern and finally breach psychological resistance of $10,000 to catapult above $12,000.
The trader used his expertise in Elliott Wave principles to correctly call the Bitcoin bottom in 2018, which happened on December 15th. The trader gave his $3,200 BTC prediction as early as June 2018.
But not all traders are short-term bearish on the top cryptocurrency. Scott Melker tells his 101,000 Twitter followers that BTC could be poised for a significant break out if volume picks up.
“BTC – the inverse head and shoulders is no longer a meme, although I am not in love with the volume. If there’s a retest of that neckline as support, we want to see serious volume on a bounce.”