If you ask pseudonymous trader Smart Contracter, Bitcoin is poised to continue its bullish momentum. The strategist who correctly predicted the bottom of Bitcoin in 2018 is convinced that a bounce is coming after the price dipped to $26,500 yesterday.
Bitcoin is getting tired
Just before Bitcoin entered the dip, which dropped its price from about $28,000 to $26,500, Smart Contracter already warned about its declining momentum. He explained to his 222,000 followers on Twitter that Bitcoin was showing signs of fatigue.
“Bitcoin’s momentum is starting to weaken. I think we will retest the $26,000 rate early in the week,” said Smart Contracter. So he’s already been right about that.
However, according to the analyst, the correction is now complete. In his view, it is unlikely that the support around the $ 25,800 price will be visited again by Bitcoin. “Okay, we’ve hit the lows. The minimum relapse target has been reached.
Time for ascents
Smart Contracter uses Elliot Wave Theory for its predictions, a popular technical analysis tool that predicts future prices based on the psychology of the crowd.
According to the theory, it moves in waves and we see that a bullish asset usually regains momentum after a corrective ABC move. Looking at Smart Contracter’s chart, it looks like Bitcoin has already completed that move.
At the time of writing, Bitcoin is trading above $27,000 again and has recovered somewhat from the correction that took it to $26,500 yesterday. An increase of $500 may not seem like much in the big picture, but at $26,500 it’s almost 2 percent.