Due to a surprising rally, the price of bitcoin once again surged above $22,000 in a short period of time. While this is a positive development for the digital asset, which has experienced several drops, things are not entirely rosy for the cryptocurrency.
Given the ongoing unfavorable market trend, there are certain levels that Bitcoin must maintain above to maintain its high value. Otherwise, it risks falling more than 85% from its peak. A well-known cryptocurrency expert who correctly predicted Bitcoin’s 2018 bottom believes that both BTC and Ethereum (ETH) are poised for significant price increases.
According to a pseudonymous analyst, bitcoin has ended a five-wave move on the four-hour chart. smart contractorAnd now most likely it is ready for a corrective move up to the $20,000 mark.
Based on crowd psychology that tends to emerge in waves, the Elliott wave theory is a sophisticated technical analysis method that seeks to predict future price action. The theory suggests that the asset’s trend will turn when the five-wave rally ends. Despite the short-term bearishness on BTC, the smart contractor thinks that Bitcoin may be forming a circle bottom.
“I can also create a higher time frame weekly swing failure pattern / double bottom… at least, [I’m targeting] Weekly higher range around the $24,000-$25,000 mark. ,
The significant Ethereum merger is scheduled for Thursday, and investors can then see significant price volatility. Additionally, Ethereum has been stifled by pre-existing economic concerns; With the release of August inflation data on Tuesday, it fell below $1,600. According to SmartContract, the top smart contract platform, Ethereum is expected to see a significant setback before rallying sharply towards its target of $2,400.
“ETH C-Wave Down is probably now underway, correcting a five-wave rise from July lows.”