A top cryptocurrency strategist that has gained a large following on social media after accurately calling bitcoin’s 2018 bear market bottom above $3,000 has pointed out that he believes Bitcoin ($BTC) will see a short-lived price rally before dropping further.
In a tweet shared with his over 200,000 followers, pseudonymous cryptocurrency analyst Smart Contracter noted the flagship cryptocurrency could rally to $17,500 before moving down to a new low around the $15,500 mark.
Smart Contracter’s price prediction uses Elliott Wave theory, which according to Investopedia was developed by Ralph Nelson Elliott in the 1920s after he observed and identified “recurring, fractal wave patterns.”
These fractal wave patterns are based on the psychology of the masses. The Elliott Wave theory is usually interpreted is usually interpreted based on five waves moving in the direction of a main market trend, which can be bullish or bearish, and by three corrective waves. The repetition of these patterns, theory suggests, allows the movements of asset prices to be predicted.
The theory is said to have gained notoriety when Elliott himself predicted the stock market bottom in 1935 after a 13-month correction. Smart Contracter’s analysis of SOL using it suggests the price of the cryptocurrency has completed a wave-two corrective phase and is now ready for a third wave rally.
In a follow-up tweet, Smart Contracter pointed out that the U.S. Dollar Index (DXY), which is an index of the value of the United States dollar relative to a basket of foreign currencies including EUR, GBP, JPY, and CHF, is looking bullish after overtaking its resistance.
It’s worth noting Smart Contracter is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then-all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
As CryptoGlobe reported various analysts are bullish on BTC. A fund manager at investment giant VanEck has recently predicted that the price of the flagship cryptocurrency Bitcoin could rally to $30,000 in the second half of 2023 after falling to a low near the $10,000 to $12,000 mark.
Earlier this month billionaire investor Tim Draper, the founder of Draper Associates and one of Silicon Valle’s best-known investors, doubled down on his $250,000 Bitcoin price prediction, saying the cryptocurrency will hit that mark by June of next year.
Draper isn’t the only billionaire bullish on crypto. Billionaire investor Mike Novogratz has revealed that he still believes BTC will trade at $500,000 per coin in the future, but delayed his prediction over the Federal Reserve and other central banks raising interest rates to rein in inflation.
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