A crypto strategist who accurately referred to as Bitcoin’s (BTC) 2018 bear market low says a bounce is probably going in sight for the king crypto.
Pseudonymous analyst Good Contracter tells his 216,900 Twitter followers that he expects Bitcoin to rally within the close to time period earlier than BTC ignites one other leg down towards his goal under $16,000.
“5-[wave] down from that vary excessive fakeout now on four-hour [chart], which is a confirmed pattern reversal in my eyes. Anticipating additional decline to backside of the vary after we get a counter-trend bounce over the following few day[s].”
Good Contracter is a well-liked practitioner of the Elliott Wave principle, a technical evaluation strategy that makes an attempt to foretell future worth motion by following crowd psychology that tends to manifest in waves. In accordance with the speculation, a bearish asset usually bounces after finishing a five-wave pullback earlier than resuming its downtrend. Trying on the analyst’s chart, he seems to foretell a short-term burst for Bitcoin en path to $17,500 prior to a different five-wave correction towards $15,600.
The crypto strategist additionally says that Bitcoin appears to be like weak on the upper timeframe after BTC bulls failed to maintain final week’s rally.
Good Contracter can also be maintaining an in depth watch on the US greenback index (DXY), which measures the worth of the greenback towards a basket of fiat currencies. Merchants monitor the efficiency of the DXY as a robust index means that traders are transferring to the security of the US greenback on the expense of threat belongings like cryptocurrencies.
In accordance with the analyst, the DXY appears to be like bullish on the month-to-month chart after taking out its diagonal resistance.
“We additionally received a multi-month DXY ending diagonal breakout on Friday, not good for threat asset bulls.
Once more, time to start out getting defensive, keep protected on the market.”
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Featured Picture: Shutterstock/TadashiArt/Natalia Siiatovskaia
