Trader Who Nailed Bitcoin’s $3,000 Bottom Fears More Downside is Near

Nick Chong

1 year ago

2 mins read

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Bitcoin did not fare well in 2018. Over the course of that year, the cryptocurrency plunged by dozens of percent from prices well above $10,000 to as low as $3,150 by December, falling as a “Crypto Winter” formed.

The thing is, few expected for BTC to retrace that hard, with many in the middle of 2018 asserting that $6,000 was going to be the ultimate bottom for the then-embattled asset.

But, in June 2018, a trader going by “SmartContracter” said he is “calling a bottom at exactly $3,200, with a $200 leeway on either side.” As aforementioned, Bitcoin bottomed almost exactly where he expected.

Top Analyst Warns of Further Retracement in Bitcoin

On Wednesday morning, SmartContracter noted that Litecoin was forming a bearish pattern, with the asset forming a “bearish four-hour pin bar at the 0.618 Fibonacci Retracement,” before adding that the cryptocurrency was clearly on track to see a strong bearish reversal.

Hours later, he was proven right when the market started moving lower until the proverbial dam broke near the end of the day, sending LTC, Bitcoin, and other cryptocurrencies off a proverbial cliff. Prices for the assets dropped as much as 10% in a few minutes’ time.

In short, once again, SmartContracter accurately called a move in the ever-volatile and hard-to-track Bitcoin market.

annnnnnd there it is, defo a much more aggressive dump then i was expecting, but very glad i took profits on everything this morning 🤷‍♀️ pic.twitter.com/yavNkFbVz5

— Bluntz (@Bluntz_Capital) February 19, 2020

The thing is, per his chart, Litecoin still has further to fall. His analysis suggests that by the end of the month, LTC will be trading at $61 — still around 17% below the current price of $71.

With Litecoin forming a trend of leading Bitcoin over the past year, this means that if the altcoin will fall as the accurate analyst expects, so too will Bitcoin.

This lines up with a previous Elliot Wave analysis he made, in which he noted that Bitcoin is likely to retrace to the mid-$8,000s, then begin its true bull run.

The analysis, which NewsBTC covered previously, suggests that Bitcoin has a high likelihood of breaking $14,000 — 48% above the current price point of $9,400 — by the middle of 2020, likely around or just after the time of the block reward reduction in May 2020.

SmartContracter is open to seeing the price of Bitcoin surge towards the previous all-time high of $20,000 if the cryptocurrency breaks and retests $14,000 as support.

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.