Anonymous crypto analyst and trader SmartContracter told his more than 210,000 Twitter followers that he expects Bitcoin to hit a new low, and then it will begin its rally journey:
“In the lower timeframes, I think at least another new low will come before we see any relief bounces for BTC.”
According to the price charts shared by the analyst, Bitcoin (BTC) could drop to just over $20,000 according to the Fibonacci retracement levels and the Elliott Wave Theory. The charts shared by SmartContracter reveal that Bitcoin’s main trend is about to complete its fifth wave, and then it will start an upward correction in a three-wave pattern after reaching the 0.618 Fibonacci retracement level.
Elliott Wave Theory shows that the main trend of an asset's price moves in a five-wave pattern (i, ii, iii, iv, v), while its corrective lower trend occurs in a three-wave pattern (A, B, C). Fibonacci retracement levels are a technical analysis method used to determine the support and resistance levels of an asset based on the famous Fibonacci number sequence.
SmartContracter argues that once the Bitcoin (BTC) price hits its downside target of around $20,500, it could later rise in double-digit percentages:
"I'm looking for another bottom in BTC and would be happy to see a rise of 10-15 percent after this bottom hits. 0.618 (Fibonacci retracement level) is slightly below $20,500, so this seems logical."
The largest cryptocurrency Bitcoin (BTC) is trading at $ 21,564, with an increase of 1.95% in 24 hours at the time of writing. The rest of the cryptocurrency markets are showing signs of recovery, led by Bitcoin (BTC). Its total market value is 1 trillion 47 billion dollars.