Is Bitcoin Setting a Mega Bull Trap? Popular Crypto Trader Predicts BTC Will Sink After Hitting This Target
A widely followed crypto analyst is warning that Bitcoin (BTC) is on the final leg of its current upward trajectory.
Applying the Elliott Wave theory in his technical analysis, the pseudonymous crypto trader Smart Contracter tells his 220,400 Twitter followers that Bitcoin is currently forming the final wave in a five-wave bullish pattern that started earlier this year.
Under the Elliott Wave theory, the main trend of an asset’s price moves in a five-wave pattern while a correction occurs in a three-wave pattern.
According to Smart Contracter, the fifth wave will catapult Bitcoin to above $26,000 resulting in elevated bullish sentiment. The analyst says that Bitcoin will then fall below $20,000 before the “real” rally for this year kicks off.
“The wave 5 on the BTC daily [timeframe] now well underway.
Anticipating us to take out those $25,200 highs, probably seven a tad higher up to around $26,000 – $26,500 to obliterate the last remaining bears, get everyone mega bull, then a slow 2 month+ dump into the $19,000s before the real 2023 bull run begins.”
Source: Smart Contracter/ Twitter
Smart Contracter’s prediction contrasts with that of another popular analyst who foresees Bitcoin rallying by up to 40% if it rises above a key psychological level.
Fellow crypto analyst Michaël van de Poppe tells his 648,100 Twitter followers that he sees Bitcoin surging above $30,000 after hitting the northern side of $25,000.
“Corrections are relatively short-lived in an upwards trending market.
Higher timeframe levels get one test and then markets start to shoot upwards, as people overshort the correction.
Breaking $25,000 and we’ll continue towards $30,000 – $35,000 for Bitcoin.”
Generated Image: Midjourney