A trader who continues to build a following with his timely Bitcoin (BTC) calls as of late thinks that the crypto king is gearing up for a parabolic surge.
Pseudonymous analyst Credible Crypto tells his 349,100 followers on the social media platform X that BTC appears to have printed a local bottom after touching the diagonal support of a bullish pennant pattern at $33,400.
The crypto strategist shares a chart suggesting that BTC will rally to about $39,000 first to end its major third-wave surge before consolidating and rallying above $48,000 in the first two weeks of November.
“The current consolidation structure is forming a series of lower highs and higher lows – a triangle structure which, in an impulsive move, is only found in the 4th wave. This adds further credence to our count off the bottom and gives us a clear invalidation point ($33,400) as well. If this is correct, our local bottom is in and we are about to launch into the 5th (red) sub-wave pictured in the ‘map’ below.”
Credible Crypto practices the Elliott Wave theory, an advanced technical analysis approach that tries to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset goes through five major waves with each wave having its own five sub-waves.
With Bitcoin trading at $34,319 at time of writing, Credible Crypto’s chart suggests that BTC has broken out of its bullish pennant pattern and is now en route to around $39,000 for the sub-wave five of wave three.
The crypto strategist also notes that Bitcoin has been recently outperforming tech stocks and says BTC looks poised for a big burst to the upside.
“Tech stocks look like hot garbage here while BTC has just broken out of a multi-month consolidation structure and is looking to go parabolic. Inbefore ‘muh decoupling’ is all over crypto Twitter.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney