A trader who correctly called Bitcoin’s recent dive below $23,000 says he’s now ready to re-enter the market.
The pseudonymous analyst, known in the industry as Smart Contracter, revealed he switched to stablecoins last week in anticipation of BTC diving to as low as $22,000.
Now that Bitcoin has retraced from a recent high of about $24,200 to the $22,700 range, the trader says the top crypto is low enough to justify once again diving into the market.
His new BTC target is above $25,000.
“Leaning towards the W5 on BTC being underway, now taking out those $25,000 highs.
This might be the final push higher on daily before we get a deeper decline into the next few months. Make the most of it in my opinion.”
The trader uses Elliot wave theory for his analysis, which is based on the notion that the psychology of traders often plays out on charts in predictable waves of highs and lows.
Smart Contracter says he’s also beginning to accumulate Ethereum (ETH).
“Interestingly ETH has pulled back from the highs in only 3 waves, finding support near the 0.618.
So ETH may be gearing up for another leg. Not only that, but ETH/BTC still looks bearish in my opinion, which means maybe BTC has bottomed here too and outperforms. I’m slowly gaining exposure again.”
The trader is also bullish on Dogecoin (DOGE), and says the popular memecoin has been building strength against BTC for weeks.
“Quite a nice base forming on DOGE/BTC here on the 4-hour. This accumulation wont last forever in my opinion.”
Bitcoin is at $22,810 at time of publishing, down 1% in the last 24-hours. Ethereum is at 1,622, down 0.9%, and Dogecoin is at $0.09, down 3% in the last day.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/breakermaximus/Sensvector