Over the past few days, Bitcoin saw some bullish price action for the first time in weeks. This rally took the asset as high as $6,900, up 80% from the $3,800 bottom seen last week and up 28% from the $5,400 baseline. Unfortunately, it ended abruptly just hours ago, with the cryptocurrency seeing a strong rejection at $6,900 to fall as low as $5,700.
According to a prominent analyst, this rejection is a likely precursor to further pain for this market in the coming week.
Related Reading: Scarily Accurate Fractal: Bitcoin Will Trade at $20,000 By Q1 2021
Bitcoin Could Revisit $3,000s, Warns Top Analyst
Smart Contracter, a prominent cryptocurrency trader, recently remarked that the recent rally looks “corrective,” suggesting that a reversion to a bear trend is likely:
“Haven’t done a BTC update in a while, but structurally this rise looks corrective, I think this was an ABC and we continue lower here.”
His chart, based on Elliot Wave analysis, suggests that BTC will fall as low as $3,200, the 2018 bear market low, by the end of the month. Should this take place, that means Bitcoin will fall 45% from the current price of $5,800.
havent done a $btc update in a while but structurally this rise looks corrective, i think this was an abc and we continue lower here pic.twitter.com/kzibbSFryh
— ??Benjamin Blunts?? (@SmartContracter) March 20, 2020
While many crypto investors are skeptical of the validity of Elliot Wave analysis, Smart Contracter has a strong track record in analyzing the ever-volatile cryptocurrency markets, giving credence to his commentary.
In the middle of 2018, when Bitcoin was in the midst of a bear market, Smart Contracter revealed at which point he expects BTC to bottom, writing:
“I’m calling a bottom at exactly 3.2k with a 200 dollar leeway either side.”
By the middle of December, his forecast was proven to be right when Bitcoin plunged from $6,000 to a low of $3,150 over the span of a few weeks, then established a macro bottom at that level. Furthermore, he predicted shorter-term price moves over the past few months, like calling some of Bitcoin’s rally early this year and the crypto market’s decline in mid-February.
Related Reading: As Ripple’s XRP Holds Key Level, Analyst Eyes 100% Rally: Here’s Why
Not Only One That Thinks $3,000 Is Possible
Smart Contracter is far from the only analyst and industry commentator to have suggested that Bitcoin could revisit $3,000 in the coming weeks.
Per previous reports from NewsBTC, Vijay Ayyar, head of business development at Luno, explained to Bloomberg that Bitcoin could found itself in a range between $3,000 to $6,500 in the coming months prior to breaking higher to start a new bull run:
This is classic redistribution and would be very healthy for future Bitcoin price action and if we were to have bullish momentum going forward.
Featured Image from Shutterstock