BTC is at the beginning of a strong downward movement, says analyst2 min read
While the price of BTC has been giving divergent bullish and bearish signals, for a popular cryptocurrency analyst there’s nothing to hide: BTC is poised for a big fall.
The analyst known as Smart Contracter said that the BTC has failed to break through an important level of resistance. In that sense, the strategist predicts that the BTC could be on its way to its long-term support around $30,000.
“What if we eliminate the June lows again, after taking the April highs, as part of a larger structure that destroys bulls and bears? I wouldn’t rule that out. I maintained my uptrend for a long time and largely underestimated the severity and depth of this decline,” he said.
Also according to him, a new low to US$ 30,000 will support the subsequent upward movement for the BTC, this one will push the cryptocurrency above US$ 100,000.
Looking at the chart, Smart Contracter noted that BTC appears to be mirroring the limited accumulation of the Dow Jones Industrial Average (DJI) Index between early 2000 and 2010.
So if the strategist’s script works, BTC could drop below $30,000 before the parabolic rally to a new all-time high.
Also, for Smart Contracter, ETH can also crash. As the analyst pointed out, the current moment is one of caution with altcoin after it breaks its diagonal support.
“This trend line break in the ETH/USD pair is super worrying for me. Over the last week, it seemed somewhat recoverable. But yesterday’s daily close made it look downright awful, in my opinion.”
Thus, the analyst does not recommend purchasing ETH now. According to him, the movement in the price of ETH will depend on how BTC will position itself in the short term. And, depending on your opinion about the BTC, it will also be down to ETH.