The widely tracked crypto strategist who accurately predicted the Bitcoin (BTC) bear market lows in 2018 says that a strong BTC bounce is in sight.
Pseudonymous analyst Smart Contracter tells his 207,200 Twitter followers that Bitcoin is in the midst of a five-wave downtrend in the lower timeframe.
According to the crypto strategist, he sees BTC igniting a rally this week with a target of around $45,000.
“BTC [is] now in the process of an impulsive five-wave decline on 4h, so expecting a nice relief bounce to $45,000 or so in the coming days.”
While the crypto strategist is bullish on BTC, he warns traders that the rally will be short-lived.
“Then further downside, $37,000 – $38,000 is new key support.”
Smart Contracter relies on the Elliott Wave theory, a technical analysis approach that predicts future price action by following the psychology of market participants that tends to manifest in waves.
Smart Contracter also predicts Bitcoin will begin its corrective move just as market sentiment turns bullish.
“We got the dump. Now comes the swift bounce that gets everyone turbo bullish again [at] around $44,000… BTC daily looks really nice now for a 15% bounce or so, got our longs in before it was even a wick. Just don’t hold it for too long, in my opinion.”
At time of writing, Bitcoin is exchanging hands for $40,895.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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