A popular cryptocurrency analyst is bullish on Bitcoin (BTC) even as the price of the flagship crypto asset remains subdued.
The crypto analyst and trader pseudonymously known as Smart Contracter tells his 202,400 Twitter followers that Bitcoin is forming a bullish reversal pattern known as the swing failure pattern.
A swing failure pattern occurs when the price fails to reach a new low in a downtrend or fails to hit a new high in an uptrend, thus signaling a trend reversal.
Smart Contracter also says the Bitcoin Fear & Greed Index, a sentiment indicator with values ranging from 0 to 100, has stayed in the bottom quartile for days.
Values of between 0 and 24 indicate extreme fear is prevalent while scores of between 25 and 49 indicate fear.
A score of between 51 and 74 indicates market greed, while a score of over 75 indicates extreme greed. The last time the score was above 24 was on January 3rd.
According to the crypto trader, Bitcoin ending January 18th without breaking below $41,000 would be an indication that the bottom is in.
“Nice bullish Swing Failure Pattern forming on structural support/0.618 [Fibonnaci level] for Bitcoin, plus we’ve been in extreme fear territory for almost 3 weeks straight.
I think if [the] daily candle closes roughly above $41,000 in an hour on January 18th of 2021, [the] bottom is in.”
Bitcoin is trading at $41,901 at time of writing with the lowest point reached on January 18th being $41,250.
In mid-2018 when Bitcoin was trading at over $5,000, Smart Contracter accurately predicted that the flagship cryptocurrency would bottom out at around $3,200.
His prediction was realized in December of that year when BTC hit a low of $3,156 before a rally.
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Featured Image: Shutterstock/Kiselev Andrey Valerevich
