Bitcoin could fall before 'next impulsive move higher,' says trader – here are his targets
A well-known crypto analyst and trader says Bitcoin (BTC) could see a decline before a fresh surge higher.
Pseudonymous crypto strategist Credible Crypto tells his 360,400 followers on the social media platform
According to the trader, the next rise of the crypto asset by market capitalization is likely to exceed the price of over $60,000.
“One month and $6,000 later, BTC price action is progressing beautifully. Now a fourth wave consolidation is completing above $40,000 to prepare for the next impulsive rise to $60,000. The structure is incredibly clean and while this fourth wave can technically drain less than $40,000 without causing structural “damage,” I don’t expect that to be the case.”
Source: Credible Crypto/X
The analyst relies on Elliott Wave Theory, a technical analysis method that attempts to predict future price movements by following crowd psychology, which tends to manifest itself in waves. According to the theory, a bullish asset experiences a five-stage increase, with waves two and four acting as correction periods.
Looking at the trader's chart, he seems to be predicting that Bitcoin is at the end of its fourth wave correction, with the fifth and final wave reaching $60,000.
At the time of writing, Bitcoin is trading at $40,944.
In an accompanying video update, the analyst updates his outlook on leading smart contract platform Ethereum (ETH), saying he believes ETH has hit its near-term bottom and will rise as BTC recovers.
“I think Ethereum has probably bottomed out at this point… [It’s] probably forms a basis in the [$2,154-$2,216] region, and then we will probably follow Bitcoin higher.
So despite earlier looking for a return to the bottom [$2,154] For Ethereum, I think these lows are likely to remain the same as the local lows for Bitcoin.”
Source: Credible Crypto/X
Ethereum is trading at $2,170 at the time of writing, still above the analyst’s short-term low.
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