A prominent crypto strategist and trader says he’s pulling out of his altcoin positions as he believes Bitcoin and Ethereum are poised for a deep correction.
The pseudonymous trader, known in the industry as Smart Contracter, tells his 165,600 followers that he sees Bitcoin (BTC) dropping below $40,000 while Ethereum (ETH) could slide below $3,000.
“Took profit on a whole lot of my alt positions despite how bullish I think they may look. I think BTC and ETH are both about to put in deeper C waves, correcting the 5 wave rises they both had from the July lows and a push down to $36,000 and $2,600 respectively will affect everything.”
Smart Contracter relies on the Elliott Wave theory, a technical analysis approach that forecasts future price action by following the psychology of market participants that tends to manifest in waves. According to the theory, an asset goes through a significant leg down (ABC wave) after completing a five-wave cycle in an uptrend.
Recently, Smart Contracter said that he’s looking at Solana (SOL) and Ethereum competitor Avalanche (AVAX) for possible rallies. The other coins on his radar are Synthetix (SNX), a cryptocurrency that powers the trading of synthetic assets, and Curve (CRV), the governance token of stablecoin decentralized exchange Curve Finance.
While Smart Contracter is short-term bearish on Bitcoin, fellow crypto analyst Michaël van de Poppe believes BTC is on the verge of igniting a rally to $50,000 after holding the key support level above $47,000.
“Still pretty much fine for Bitcoin.”
At time of writing, BTC is trading at $47,941, according to CoinMarketCap.
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