A famous cryptocurrency strategist who garnered a significant social media following after correctly predicting bitcoin’s 2018 bear market bottom above $3,000 has revealed that the flagship cryptocurrency’s price will now fall to $28,000.
According to Daily Hodl, the pseudonymous analyst known as Smart Contractor on social media advised his over 200,000 followers that BTC’s recent comeback to break a downtrend that saw it hit the $32,000 mark was an “abysmal bull trap” after it failed to hold the 0.618 Fibonacci level.
According to the researcher, a decline in the price of the flagship cryptocurrency to $28,000 is now “inevitable.”
Bitcoin In Bull Trap
It’s worth noting that a bull trap is a false indication that arises when an asset’s price is decreasing and reserves break through a previous support level.
When these signals appear, traders holding long positions (also known as bulls) become stuck and lose money by acting on what appear to be bullish signs.
Bitcoin is presently selling at roughly $38,500, according to CryptoCompare data, up from a low of $32,000 earlier this year but still far behind its all-time high near $69,000 set late last year.
The $28,000 mark is near to the cryptocurrency’s fifth Fibonacci retracement level, which it bounced off of at the end of J
July last year before resuming its upward trend.
The price of bitcoin has already dropped through its first ($58,445), second ($52,810), third ($48,260), and fourth ($43,700) retracement levels. These levels show where BTC has found support and are based on Fibonacci’s sequence, a mathematical formula that dates back to the 13th century.
It’s worth mentioning that Smart Contractor made headlines in June 2018 when he predicted that the bear market in bitcoin, which saw the price plummet from an all-time high near $20,000, would end with the coin trading at $3,200. BTC hit the target in December of that year, almost exactly as predicted.
Other analysts are bullish in the long run. Kevin O’Leary, a celebrity investor who plays “Mr. Wonderful” on ABC’s “Shark Tank,” has predicted that bitcoin will reach $300,000 once US regulators “rule on cryptocurrencies.”
JPMorgan Chase strategists, led by Nikolaos Panigirtzoglou, believe Bitcoin’s present “fair value” is roughly $38,000, with a theoretical price target of $150,000.