Despite the short-term volatility Bitcoin has faced, the cryptocurrency has held up surprisingly well, holding the crucial $9,500 support on a daily and weekly basis as if its life depended on it.<\/p>\n
A number of prominent analysts, such as Filb Filb, have argued that BTCs ability to maintain a price above $9,500 is a clear-as-day sign the cryptocurrency will continue higher in the coming weeks.<\/p>\n
Though the next leg higher that investors across the board are waiting for may not happen, a top analyst with a quite accurate track record has recently warned.<\/p>\n
In an analysis published Feb. 23, amid Sundays brief market recovery that took Bitcoin above $10,000, analyst Smart Contracter warned of impending market weakness.<\/p>\n
He noted that Litecoins recovery on the weekend felt like a wave B to me, which per Elliot Wave theory, should be followed by a wave C retracement that is likely to bring the cryptocurrency to $59 20 percent lower than the current price of Bitcoin, and around 25 percent lower than the asset was trading when Smart Contracter published the below analysis.<\/p>\n
This is relevant for Bitcoin because LTC has long acted as a pseudo-bellwether for the rest of the cryptocurrency market.<\/p>\n
The most memorable case of this was in the first half of 2019, which is when LTC started rallying dozens of percent higher week over week while Bitcoin flatlined around $4,000. For around two months, the asset rallied on its own, then was followed by BTC and the rest of this nascent asset class.<\/p>\n
Litecoins ability to precede the rest of the market is important because it suggests that should LTC start crash here, so too should Bitcoin.<\/p>\n
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.<\/p>\n
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:<\/p>\n
Im calling a bottom at exactly 3.2k with a 200 dollar leeway either side.<\/p>\n
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.<\/p>\n
While Smart Contracter is warning of blood in the streets in the short term, he is bullish on Bitcoin (and presumably other cryptocurrencies) from a longer-term perspective.<\/p>\n
Late January, he posted the below chart, remarking that Bitcoin is in the midst of a five-wave rise from the $6,000s.<\/p>\n
His Elliot Wave analysis suggests that Bitcoin has a high likelihood of breaking $14,000 45 percent above the current price point of $9,600 by the middle of 2020, likely around or just after the time of the block reward reduction in May 2020.<\/p>\n<\/p>\n
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