Crypto Analyst Who Nailed 2018 Bear Market Bottom Says Bitcoin (BTC) Trading Below $30,000 Now Inevitable

The crypto analyst who accurately called the 2018 bear market bottom is issuing a warning to Bitcoin traders, saying BTC is in danger of breaching support at $30,000.

Pseudonymous analyst Smart Contracter tells his 205,100 Twitter followers that Bitcoin’s recent surge from the lows of $33,000 on January 24th to the highs of $45,000 on February 10th appears to be a massive bull trap.

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“BTC failed to hold the 0.618 [Fibonacci level] so looking like that downtrend break was an abysmal bull trap.

Feels like a test and possibly sweep of $28,000 support [is] inevitable at this point.”

Source: Smart Contracter/Twitter

At time of writing, Bitcoin is exchanging hands at $37,899.

In December, when Bitcoin was trading above $50,000, Smart Contracter predicted a sharp Bitcoin correction down to around $25,000.

“What if we take out the June lows again after taking out the April highs all as part of a larger structure that ruins both bulls and bears? I wouldn’t rule it out. Also on a side note, I maintained my bullish bias for too long and vastly underestimated the severity and depth of this dip.”

Source: Smart Contracter/Twitter

Smart Contracter appears to base his analysis on the market structure of the Dow Jones Industrial Average Index when it traded in a wide range between 1998 and 2009 before breaking out and igniting a parabolic surge.

While Smart Contracter is short-term bearish on Bitcoin, fellow market analyst Justin Bennett believes that BTC is already flashing bullish reversal signals on the lower timeframe.

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“BTC hourly still looks good. Descending broadening wedge and RSI bullish divergence.

That doesn’t mean everything is A-OK, far from it.

The highest conviction play, in my opinion, is a daily close above $39,600. Dicey until then.

But the setup is there if bulls decide now is the time.”

Source: Justin Bennett/Twitter

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Featured Image: Shutterstock/IM_VISUALS/Konstantin Faraktinov

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