A closely followed crypto analyst and trader is saying that Bitcoin is gearing up for recovery as he outlines potential bottom levels for Ethereum.
Pseudonymous trader Smart Contracter tells his 193,300 Twitter followers that Bitcoin is flashing signs that the correction is almost over.
“No sign of reversal ‘just yet’ but, we just had our final capitulation volume, in my opinion, and I think BTC is due for a strong bounce up to $63,000 soon as a worst-case scenario. Obviously, [the] best-case scenario is a new all-time high.”
Smart Contracter is a popular Elliott Wave technician, a branch of technical analysis that forecasts future price action by following the psychology of market participants which tends to manifest in waves. According to the trader’s chart, Bitcoin has completed a five-wave corrective move and is now poised to ignite a leg up.
Looking at Ethereum, Smart Contracter says that he expects the second-largest crypto asset by market cap to continue correcting as he outlines levels where ETH might begin to bounce.
“I’m a little bit worried about ETH here, at least for the medium term. [An] argument can be made we just made an ABC up to the 0.618 [Fibo level] after a five-wave decline on [the] 4-hour [chart]. [I] sold a bit here and will look to relong any capitulation between $3,600-$3,800. [I] might be wrong but rather be safe than sorry.”
Fellow crypto analyst Credible also believes that Ethereum is due for one more leg down.
“[The] bottom is near in my opinion. Maybe a sweep of the local lows at $3,800 and a final swing down but we are close… ETH.”
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