A closely followed crypto trader and analyst says that Bitcoin could be on the verge of igniting the final stage of its bull market.
The trader, known as Jack Sparrow, tells his 209,100 Twitter follows that Bitcoin (BTC) is gearing up to launch the fifth and final wave of the bull market, assuming the asset follows a pattern similar to its 2013 and 2017 boom cycles.
“Based on the previous two bitcoin cycles, the current cycle is short of a top and each final fifth wave originated at the previous two green arrows. Exactly where we are positioned right now.”
The trader’s analysis is based on the Elliott Wave Theory, an approach that technical analysts use to make predictions about future price action based on crowd psychology that tends to manifest in waves. According to the theory, a fifth wave represents the last stages of a bull market, in which an asset blasts off before reversing its trend.
Jack Sparrow says he’s positioning himself in the long term for the possibility of BTC’s meteoric rise to $380,000.
As for the leading smart contract platform Ethereum (ETH), the crypto strategist says he’s looking to accumulate ETH as it reclaims key levels against Bitcoin.
“Will be on the lookout for ETH to throw more chips in at each claim of a red zone.”
Looking at the ETH/USD chart, Jack Sparrow says that the pair is on a strong uptrend in the lower timeframes and could rally as high as $3,050.
“I want to sleep but then I see this chart and realize there is a trade to be made any time now.”
At time of writing, Ethereum is trading at $2,541, above Jack Sparrow’s last line of resistance at $2,420.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Sergey Nivens