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In the past three weeks after Bitcoin dropped to $ 3,800 in the big capitulation, the cryptocurrency market has recovered extremely sharply. In fact, the cryptocurrency recently skyrocketed by about 10% within a few hours and rose in a strong upward swing from $ 6,600 to $ 7,200, liquidating dozens of millions of short positions.
The action has convinced many that the bottom of the digital asset market has been reached, especially given the fact that the macro trends continue to speak for Bitcoin. But in the opinion of a very determined trader, this is unlikely.
Has Bitcoin bottomed out?
The past few weeks have definitely been positive for Bitcoin; the cryptocurrency has established a number of higher lows and higher highs, showing the signs of an emerging uptrend.
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But according to the Kryptotrader Smart Contracter, Bitcoin’s chart still appears a bit bearish from the perspective of Eliott wave theory. He shared this on April 3:
There are so many different ways you could rate BTC here: either wxy, bigger triangle, bigger area, I’m not too sure, the one thing that stands out is the series of 3 wave motions and the lack of 5 wave motifs. For this reason, I think it’s too early to call the ground.
theres so many different ways you could count btc here.
either wxy, larger triangle, larger flat, im not too sure, the one thing that does stick out is the series of 3 wave moves and lack of 5 wave motives.
for this reason i think its still too early to call a bottom pic.twitter.com/WNBxJEcOdF
– ????????Benjamin Blunts???????? (@SmartContracter) April 3, 2020
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His opinion has been confirmed by other analysts who focus on the Eliott waves. They explained that Bitcoin’s recent rally looks “corrective” when volume declines, which would suggest that a downward relapse will become more likely over time.
Previously, in mid-March, Smart Contracter had suggested that Bitcoin would fall back to its low of $ 3,200 in 2018 by the end of the month.
Good track record
While many crypto investors are skeptical about the validity of the Eliott wave theory, Smart Contracter has a strong track record of analyzing the ever-fluctuating cryptocurrency markets, which makes its comment credible.
In mid-2018, when Bitcoin was in a bear market, the trader said he anticipated the asset would bottom out at $ 3,200:
I see bottoming out at exactly $ 3,200 with a margin of $ 200 on both sides.
In mid-December, his forecast proved to be correct when Bitcoin plummeted from $ 6,000 to a low of $ 3,150 in a matter of weeks, then hit a macro-economic low at that level.
In addition, he predicted short-term price movements in recent months, such as some predictions about the strength of Bitcoin earlier this year and the rapid decline in the crypto market in mid-February.
Source: NewsBTC
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