Bitcoin Price Analysis: Analyst Maps Next Levels For BTC Price
The post Bitcoin Price Analysis: Analyst Maps Next Levels For BTC Price appeared first on Coinpedia Fintech News
After Terra’s fall and FED’s policy that was kicked off in the year 2022, war broke out and the fallout from the FTX collapse was like the last straw.
Crypto has weathered the storms of the long crypto winter.
Smart contracter, a crypto analyst, has yet again come up with his analysis of the Elliott theory based on historical data to make sense of the new bear market lows. He employed Elliott Wave theory to technically analyze future price action by watching market players’ psyche, which emerges in waves.
New Bear Market Low for BTC?
According to the analyst who predicted Bitcoin’s (BTC) bottom for 2018, the dominant cryptocurrency is preparing for a new bear market low, which will be marked by a corrective move.
Bitcoin’s recent rise from its current bear market bottom of $15,546 is likely coming to an end, analyst Smart Contracter (a pseudonym) informs his 216,200 Twitter followers.
For the time being, “I still believe that the current rise higher on BTC is part of a corrective ABC wave four before making a new low sub-$15,000 in Q1 2023 where they discover a longer-term bottom.â€
What Next For Bitcoin Price?
It is postulated that a downward trend takes the form of five waves, with the asset experiencing brief reversals between waves two and four.
Going with Smart Contracter’s analysis, Bitcoin is nearing the end of its wave four bounce and getting ready for the last drive toward $18,000. The analyst forecasts that after this point, BTC will continue its slide to its target of roughly $14,500, thus completing the five-wave cycle.
Bitcoin is trading at $16,979 at the time of this writing, which would mean a drop of roughly 15% if BTC were to fall below the minimum threshold set by Smart Contractor.
The US dollar index (DXY), which the crypto analyst claims are emitting optimistic signals, is another indicator that he is closely monitoring.
However, today’s significant DXY reversal is not what crypto bulls want to see. Despite the best possible scenario, he believes it will still bounce to between 108-109, which will probably push cryptocurrency lower.
A strong index signals that investors are selling risky assets like equities and bitcoin in favor of the US dollar, thus traders are closely monitoring the DXY.
Will BTC Surge Up?
Credible, a fellow Elliott Wave theorist, predicts that Bitcoin will explode past the $18,000 resistance level. The expert tweets to his 336,200 followers on Twitter that the one-hour chart of Bitcoin shows an uptrend and that a significant bounce appears to be imminent.
Overall, the Elliott Wave theory states that in an uptrend, an asset will experience five waves, the first three of which will be uptrends. The expert believes that the wave two corrections in BTC will terminate above $16,400, setting off wave three rallies above $18,000.
Conclusion
Bitcoin’s (BTC) price is projected to initially test $16,000 to 16,500 and then surge to $18,500 to $19,000. While this forecast may give investors hope, in the long run, it also ignores the fact that the current crypto winter is expected to last until at least May 2023.
As an added bonus, the price may go as high as $30,000, with $22,000, $26,000, and $28,000 as potential stopping points.
