Is Bitcoin Setting a Mega Bull Trap? Popular crypto trader predicts that BTC will drop after reaching this target
A widely followed crypto analyst is warning that Bitcoin (BTC) is on the last leg of its current upward trajectory.
Using the Elliott Wave theory in its technical analysis, the pseudonymous crypto trader Smart Contractor says his 220,400 Twitter followers that Bitcoin is currently forming the final wave of a five-wave bullish pattern that started earlier this year.
Under the Elliott Wave theory, the main trend of an asset price moves in a five-wave pattern while a correction occurs in a three-wave pattern.
According to Smart Contractor, the fifth wave will catapult Bitcoin above $26,000, resulting in increased bullish sentiment. The analyst says that Bitcoin will then fall below $20,000 before the “real” rally for this year starts.
“Wave 5 on BTC Daily [timeframe] now well underway.
Expect us to take out those $25,200 highs, probably seven a tad higher up to around $26,000 – $26,500 to wipe out the last remaining bears, get all the mega bulls, and then a slow 2 month+ dump into the $19,000s before the real 2023 bull begins. “
Smart Contractor’s prediction contrasts with another popular analyst who predicts that Bitcoin will increase by up to 40% if it rises above an important psychological level.
With cryptoanalyst Michaël van de Poppe telling his 648,100 Twitter followers that he sees Bitcoin rising above $30,000 after hitting the north side of $25,000.
“Corrections are relatively short-lived in a market with rising trends.
Higher timeframe levels get one test and then the markets start to shoot higher as people short the correction.
Breaking $25,000 and we continue towards $30,000 – $35,000 for Bitcoin.”
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