Crypto Analyst Who Hits Bitcoin 2018 Bottom Predicts BTC Rally Coming, But There’s a Problem

A crypto strategist who aptly called the 2018 Bitcoin (BTC) bear market downturn says a rebound is likely for the real cryptocurrency.

The pseudonymous analyst Smart Contracter tells his 216,900 Twitter followers that he expects Bitcoin to rally in the near term before BTC lights up another leg towards its sub-$16,000 target.

“Five-[wave] down from that high-end fakeout hour on four hours [chart], which is a confirmed turnaround in my eyes. We expect further decline towards the bottom of the range after we get a counter-trend bounce over the next few days[s].”

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Source: Smart Contractor/Twitter

Smart Contracter is a famous practitioner of Elliott Wave Theory, a technical analysis approach that attempts to predict future price action by following the psychology of crowds that tend to come in waves. According to the theory, a bearish asset typically rebounds after completing a five-wave pullback before resuming its downtrend. Looking at the analyst’s chart, he seems to predict a near-term burst for Bitcoin en route to $17,500 before another five-wave correction towards $15,600.

The crypto strategist also says that Bitcoin looks weak in the longer time frame after BTC bulls failed to support last week’s rally.

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Source: Smart Contractor/Twitter

Smart Contracter also keeps an eye on the US Dollar Index (DXY), which measures the value of the dollar against a basket of fiat currencies. Traders are watching the performance of the DXY as a strong index suggests investors are shifting to the safety of the US dollar at the expense of risky assets such as cryptocurrencies.

According to the analyst, the DXY looks bullish on the monthly chart after clearing its diagonal resistance.

“We also got a trailing multi-month DXY diagonal breakout on Friday, not good for risk asset bulls.

Again, it’s time to start getting defensive, stay safe out there.

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Source: Smart Contractor/Twitter

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Feature image: Shutterstock/TadashiArt/Natalia Siiatovskaia

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