A popular crypto analyst and trader says that Bitcoin (BTC) could see a dip before a fresh burst to the upside.
Pseudonymous crypto strategist Credible Crypto tells his 360,400 followers on the social media platform X that while the crypto king is “progressing beautifully,” it could briefly fall under $40,000 before it once again sparks a rally.
According to the trader, the top crypto asset by market cap’s next move to the upside should have it above the $60,000 price tag.
“One month and $6,000 later, BTC price action is progressing beautifully. Now wrapping up a fourth wave consolidation above $40,000 in preparation for the next impulsive move up to $60,000. The structure is incredibly clean and while this fourth wave can technically wick under $40,000 without causing any structural ‘damage,’ I don’t expect it will.”
The analyst relies on the Elliott Wave theory, a technical analysis method that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset witnesses a five-wave rise with waves two and four acting as corrective periods.
Looking at the trader’s chart, he seems to predict that Bitcoin is at the tail end of its wave four correction with the fifth and final wave hitting $60,000.
Bitcoin is trading for $40,944 at time of writing.
In an accompanying video update, the analyst updates his outlook on leading smart contract platform Ethereum (ETH), saying that he believes ETH has hit its short-term low and will rise as BTC rallies.
“I do think that the low on Ethereum is probably in at this point… [It’s] probably forming a base in the [$2,154-$2,216] region, and then we’re likely to follow Bitcoin to the upside.
So despite earlier looking for a move back below [$2,154] on Ethereum, I think these lows will probably hold the same way the local lows on Bitcoin will hold.”
Ethereum is trading for $2,170 at time of writing, still above the analyst’s short-term low.
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Generated Image: Midjourney