A top cryptocurrency strategist that has gained a large following on social media after accurately calling bitcoin’s 2018 bear market bottom above $3,000, has revealed he believes the price of the flagship cryptocurrency will now drop to $28,000.
The pseudonymous analyst, as Daily Hodl reported, known as Smart Contracter on social media, told his over 200,000 followers that after BTC failed to hold the 0.618 Fibonacci level, it appears its recent recovery to break a downtrend that saw it test the $32,000 mark was an “abysmal bull trap.”
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Per the analyst, it’s now feeling “inevitable” that the price of the flagship cryptocurrency drops to the $28,000 mark.
A bull trap, it’s worth noting, is a false signal that occurs when the price of an asset is declining and reserves to break a prior support level. When these signals occur, traders with long positions – often referred to as bulls – get trapped and incur losses by acting on seemingly bullish signals.
Bitcoin is, according to CryptoCompare data, currently trading at around $38,500, up from a low near $32,000 seen earlier this year, but far below its all-time high near $69,000 seen late last year.
The $28,000 mark is close to the cryptocurrency’s fifth Fibonacci retracement level, from which its price bounced off of at the end of July last year, before returning to a new high.
Bitcoin’s price has already fallen through its first ($58,445), second ($52,810), third ($48,260) and fourth ($43,700) retracement levels. These levels indicate where BTC’s support has occurred and are based on a mathematical formula that originated in the 13h century, Fibonacci’s sequence.
It’s worth noting Smart Contracter is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
Over the long-term other analysts are bullish. Kevin O’Leary, a celebrity investor known as “Mr. Wonderful” on ABC TV series “Shark Tank,” has explained he sees the price of bitcoin hitting $300,000 once regulators in the U.S. “rule on cryptocurrencies.”
Strategists at JPMorgan Chase led by Nikolaos Panigirtzoglou have revealed they see Bitcoin’s current “fair value” at around $38,000, while their theoretical BTC price target is at $150,000.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Unsplash
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