An analyst who has been making timely Bitcoin (BTC) calls recently believes that the crypto king is still poised for a big surge despite yesterday's drop.
According to the trader, Bitcoin is in the latter stages of a wave four corrective move after dropping to a 24-hour low of about $35,266. The trader utilizes the Elliott Wave theory in his analysis, which predicts future price action by following crowd psychology that tends to manifest in waves. In this theory, a bullish asset goes through a five-wave rally, with waves one, three, and five moving to the upside, while waves two and four are periods of consolidation.
The trader suggests that Bitcoin is forming an ascending triangle pattern on the lower time frame, indicating a potential continuation of the uptrend. This pattern is often found in wave fours and could lead to a significant upside move.
Looking at the trader's chart, a break of the $38,000 level would mark the end of wave four and push BTC toward the target of around $44,000.
The recent pullback in Bitcoin's price has resulted in a significant decrease in open interest, which tracks the total number of outstanding BTC futures contracts. The trader believes that with excessive leverage out of the picture, BTC is now in a position to start moving upward.
Despite the recent drop, the analyst remains bullish on Bitcoin's prospects and expects the dips to be bought up aggressively. The trader's target for BTC is around $44,000, and a breakout above the $38,000 level would confirm the end of the corrective wave four. Investors should do their due diligence before making any high-risk investments in Bitcoin or other cryptocurrencies.
