A popular crypto strategist and trader is saying that Bitcoin (BTC) could be on the verge of a deep corrective move that takes the leading cryptocurrency to macro range lows.
Pseudonymous analyst Smart Contracter tells his 197,000 Twitter followers it is possible that Bitcoin may be trading in a wide range between $69,000 and $30,000.
With Bitcoin failing to break the top end of the range, the crypto strategist says that BTC could be en route to its long-term support of around $30,000.
“What if we take out the June lows again after taking out the April highs all as part of a larger structure that ruins both bulls and bears?
I wouldn’t rule it out. Also on a side note, I maintained my bullish bias for too long and vastly underestimated the severity and depth of this dip.
If it happens like this, I think it will all happen much faster than depicted. It’s not drawn to scale. I’m just bad at drawing”
Looking at Smart Contracter’s chart, Bitcoin appears to be mirroring the range-bound accumulation of the Dow Jones Industrial Average Index (DJI) between early 2000 and 2010. Should the crypto strategist’s script play out, Bitcoin could pull back below $30,000 next before launching a parabolic rally.
Smart Contracter also notes that the deep correction will put Bitcoin in a position to soar above $100,000. At time of writing, Bitcoin is trading at $48,116.
Looking at Ethereum (ETH), the crypto analyst says he’s now cautious on the leading smart contract platform after breaking its diagonal support.
“This trend line break on ETH/USD is super worrying to me. Over the last week, it looked somewhat salvageable but yesterday’s daily close sent it from looking [salvageable] to looking outright terrible, in my opinion.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Kiselev Andrey Valerevich