A closely followed crypto trader is forecasting a parabolic rally for Bitcoin this year, although BTC has not shown any bullish momentum of late.
In a fresh strategy session, Credible tells its 328,700 Twitter followers that many Bitcoin traders expect BTC to continue correcting and sweeping the $28,000 range lower.
“The expectation of surmounting these lows the same way we surmounted these highs ($69,000) is very logical… And even if we were to make such a move, our structure remains intact. We still have a high, a low, a higher high [and] a higher low. I would still expect a sequel.”
Although the crypto analyst believes a surge to $28,000 is a possibility, he sees Bitcoin taking a different path.
“In strong uptrends we tend to see higher lows and we tend not to get those usually very obvious sweeps of key levels during aggressive uptrends. There are numerous examples of this in 2017 as well.”
According to the crypto strategist, the lack of bullish momentum is preparing BTC for a final push above $100,000.
“I’m expecting $100,000 for the fifth wave, and when it’s complete, wherever that may be above $100,000… I think we’re probably going to realistically drop somewhere between $100,000 and $200,000…
But the point is that we don’t have to take these lows that are building now. We could very well continue with the fifth wave.”
Credible is a popular practitioner of the Elliott Wave Theory, a technical analysis approach that predicts future price action by following crowd psychology, which tends to manifest itself in waves. According to the theory, the fifth wave is the last rally of an uptrend.
As for how Bitcoin can reignite its bullish momentum, Credible says the same traders who expect BTC to fall to $28,000 will fuel the rally to $100,000 once they realize it may not be going where they want.
“We get these insane rallies that drag on longer than you’d expect when people have to chase the price up because they’re not getting the ideal entries they want… A lot of times we get these parabolic advances and aggressive runs are on it attributed to the fact that people waiting on the sidelines for this type of move (drop to $28k) end up not getting it.
Until we break out they are now forced to buy higher and this type of aggressive buying is chasing prices [is] leading to these irrational runs to the upside.”
Check the price action
Source: Crypto News Deutsch