A popular crypto analyst and trader says Bitcoin (BTC) could see a dip before rebounding to the upside.
Pseudonymous crypto strategist Credible Crypto tells His 360,400 followers on social media platform
According to the trader, the top crypto asset, measured by the next rise in market capitalization, should be above the $60,000 price tag.
“One month and $6,000 later, BTC price action is progressing beautifully. We are now completing a fourth wave of consolidation above $40,000 in preparation for the next impulsive move towards $60,000. The structure is incredibly clean and while this fourth wave could technically cost less than $40,000 without causing any structural ‘damage’, I don’t expect that to be the case.”
The analyst relies on the Elliott Wave theory, a technical analysis method that attempts to predict future price action by monitoring the psychology of the crowd, which often manifests itself in waves. According to the theory, a bullish asset witnesses a five-wave rise, with waves two and four acting as correction periods.
Looking at the trader’s chart, he seems to predict that Bitcoin is at the end of the fourth correction wave, with the fifth and final wave reaching $60,000.
Bitcoin is trading at $40,944 at the time of writing.
The analyst explains in an accompanying video update updates his take on leading smart contract platform Ethereum (ETH), saying he believes ETH has hit its short-term low and will rise as BTC recovers.
“I think Ethereum has probably bottomed out at this point… [It’s] probably forms a basis in the [$2,154-$2,216] region, and then we will likely follow Bitcoin higher.
So even though we were looking for a step back down before [$2,154] on Ethereum, I think these lows will likely persist in the same way as the local lows on Bitcoin.”
Ethereum is trading at $2,170 at the time of writing, still above the analyst’s short-term low.
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Generated image: Midjourney