A closely followed crypto strategist who correctly called the Bitcoin (BTC) bottom during the 2018 bear market is predicting a deep correction for decentralized finance payment network Terra (LUNA).
Pseudonymous crypto analyst Smart Contracter tells his 207,000 Twitter followers that LUNA has completed its five-wave rally and is now en route to a full-blown bearish reversal.
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“I think LUNA finally put in a long-term top. Clear five-wave rise on weekly with a bearish engulfing to confirm the top.
This will come down a minimum of 50% or so in my opinion.”
Smart Contracter subscribes to the Elliott Wave theory, a technical analysis approach that predicts future price action by following crowd psychology that tends to manifest in waves. According to the theory, an asset goes through a five-wave cycle before a major trend reversal.
Looking at the analyst’s chart, LUNA appears to be headed to $25, representing a downside potential of nearly 70% from its current price of $83.05.
The crypto strategist is also looking at Bitcoin, which he says is in the midst of a five-wave correction on the lower timeframe.
“BTC [is] now in the process of an impulsive five-wave decline on four-hour [chart], so expecting a nice relief bounce to $45k or so in the coming days, then further downside. $37-$38k is new key support.”
At time of writing, Bitcoin is trading $39,709.
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Featured Image: Shutterstock/Tithi Luadthong
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