New Lows Coming For Bitcoin, Warns Analyst Called 2018 BTC Bottom - Here's His Target
A much-followed crypto analyst and trader is expressing short-term bearish sentiment towards leading digital asset Bitcoin (BTC).
Prominent analyst SmartContracter told his 210,600 Twitter followers that Bitcoin will hit a new low, after which it will spark a rally.
“On the lower timeframes, I think we should have at least one more new low before we see any sort of slight dip in BTC.”
According to the trader's chart, Bitcoin could drop just above $20,000 based on the Fibonacci retracement and Elliott Wave Theory.
Cryptocurrency analyst suggests that Bitcoin is about to complete a fifth wave in its main trend, after which it will initiate an upward correction in a three-wave pattern upon hitting a retracement level. Fibonacci retracement 0.618.
The Elliott Wave Theory states that the main trend of an asset's price moves in a five-wave pattern (i, ii, iii, iv, v) while its minor trend, which is a corrective move, occurs in three wave pattern (A, B, C).
The Fibonacci Retracement is a method of technical analysis to determine the support and resistance levels of an asset based on the famous Fibonacci sequence.
SmartContracter says that once Bitcoin hits its fall target of around $20,500, it could then rally by double-digit percentage points.
“Looking for a further low on BTC and I'm happy for a 10-15% rally or so. The 0.618 [Fibonacci retracement] is a bit lower at $20,500, so that seems reasonable.”
Bitcoin is trading at $21,340 at press time, a small gain on the day.
Aug 25, 2022