Crypto Strategist Who Predicted 2018 Bitcoin Bottom Issues Alert Says BTC Poised For Fresh Bear Market Declines
A cryptoanalyst who correctly called Bitcoin’s (BTC) 2018 bottom says the crypto king is setting up another corrective move on its way to cutting down a fresh bear market.
Pseudonymous analyst Smart Contractor tells his 216,200 Twitter followers that Bitcoin’s recent rally from the current bear market low of $15,546 is likely to come to an end.
“I remain of the belief for now that this move up on BTC is part of a corrective ABC wave four before a new low below $15,000 into Q1 2023 where we find a long-term bottom.”
Smart Contracter practices the Elliott Wave theory, a technical analysis approach that attempts to predict future price action by following the psychology of market participants that tend to manifest in waves. According to the theory, a downtrend consists of five waves, with the asset seeing short bounces during waves two and four.
According to Smart Contractor’s chart, Bitcoin appears to be on the final leg of its wave four bounce, preparing for a final run towards $18,000. The analyst predicts that BTC will later continue its downtrend to his target of around $14,500 to complete the five-wave cycle.
At the time of writing, Bitcoin is exchanging hands at $16,979, suggesting a decline of almost 15% if BTC reaches the Smart Contractors bottom target.
The crypto strategist is also keeping a close eye on the US dollar index (DXY), which he says is flashing bullish signals.
“Big DXY reversal today, not what you want to see if you’re bullish on crypto. Even at best, I think it still bounces to around 108-109, which will likely send crypto lower.”
Traders are keeping a close eye on the DXY as a strong index suggests investors are selling risk assets such as Bitcoin and stocks in favor of the US dollar.
Meanwhile, fellow Elliott Wave practitioner Credible believes Bitcoin could rise above resistance at $18,000. The analyst tells his 336,200 Twitter followers that Bitcoin is in an uptrend on the one-hour chart and appears poised for a big bounce.
Based on the Elliott Wave theory, an asset in an uptrend also goes through five waves, where waves one, three and five are rallies to the upside. Looking at the analyst’s chart, he sees BTC ending its wave two corrective move at $16,400 before igniting a wave three rally above $18,000.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Taves/David Sandron
