The pseudonymous analyst Smart Contracter tells his 210,900 followers that Bitcoin has completed a five-wave rally on the four-hour chart and is now likely poised for a corrective move back down to the $20,000 level.
“Nice five-wave rise from the lows on four-hour for BTC. I’ll be looking to long any pullback below $20,500 over the next few days.”
Smart Contracter’s analysis is based on the Elliott Wave theory, an advanced technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, the trend of an asset reverses after completing a five-wave rally.
While Smart Contracter is short-term bearish on BTC, he believes that Bitcoin could be carving a cycle bottom.
“I can also see a higher timeframe weekly swing failure pattern/double bottom forming too… At minimum, [I’m targeting] the range highs on weekly around the $24,000-$25,000 mark.”
At time of writing, BTC is changing hands for $22,156, up over 2% on the day.
Looking at Ethereum, Smart Contracter predicts a sharp pullback for the leading smart contract platform before putting together a steep rally toward his target of $2,400.
“The ETH C-wave down is now probably underway, correcting the five-wave rise from the July lows.”
At time of writing, Ethereum is trading for $1,687, down over 2% in the past day.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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