A crypto analyst known for accurately calling Bitcoin’s bottom in 2018 is issuing an alert on BTC’s short-term trajectory.
The pseudonyous analyst Smart Contracter says BTC appears ready to retrace, and he’s stepping out of the market.
The trader, who is known for using Elliot wave theory as a primary technique, believes BTC could easily drop to $22,000 in the short-term.
“Fuck it, I’m out and chillin in stables for now. Was a good start to the month but I reckon BTC sweeps $22,000 and fuck knows what that will do to alts.”
Smart Contracter is also noting potential strength for the dollar, which just bounced above a historic level of support and resistance.
that weekly SFP on $DXY is straight up ringing alarm bells to me.
Im stabled up, good luck out there. pic.twitter.com/5WI5pbttkQ
— Bluntz (@Bluntz_Capital) February 3, 2023
Fellow analyst Michaël van de Poppe says Bitcoin could logically find a healthy way to correct all the way back to $20,000.
However, using the notion that markets tend to shift in directions that inflict the most amount of pain, Poppe says BTC could just as easily continue to break to the upside.
“Theoretically speaking, a correction to $20,000 makes a lot of sense and would be a great buy opportunity for Bitcoin.
However, most of the people are waiting for this correction to happen, as a large group is sidelined. In that regard, continuation upwards is max pain.”
After dropping below $16,000 in November, Bitcoin reached a local high of $24,182 on Wednesday. It has since retraced to its current price of $23,330 at time of publishing.
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