A preferred crypto analyst is providing his opinion on what comes subsequent for Bitcoin (BTC) and decentralized finance protocol Aave (AAVE).
The analyst pseudonymously often known as Smart Contracter tells his 199,700 Twitter followers that the native token of the Aave platform has doubtlessly made a better low, signaling a attainable rebound.
The cryptocurrency dealer says that AAVE has reached a possible assist stage by touching the 0.618 Fibonacci retracement stage, which is used to determine assist or resistance ranges.
Smart Contracter says that AAVE touched the extent after trending downwards in a corrective three-wave sample that got here after a bullish five-wave sample.
According to the Elliott Wave Theory, the dominant development which is represented by the path of the five-wave sample continues after the corrective three-wave sample.
“Dipped into some AAVE here, those green shoots on the weekly chart turned into a nice five-wave rise on the daily chart, now we tapped the 0.618 and I think this is a higher low in the making.”
In the identical tweet, Smart Contracter illustrates Aave’s upward-trending five-wave sample and a smaller downward-trending three-wave sample. According to the pseudonymous crypto analyst, AAVE might surge upwards towards the US greenback and Bitcoin subsequent.
While sustaining that Bitcoin might hit $100,000 in 2022, Smart Contracter says that the flagship cryptocurrency might fall to a low of $37,500.
Bitcoin is buying and selling at $42,450 on the time of writing and reaching the six-figure price would require a price improve of barely over 135%.
Per Smart Contracter, the bear market might start quickly after Bitcoin has reached a price of over $100,000.
“I believe BTC bottoms wherever between now and $37,500 and offers us an identical construction to what we noticed in 2019 simply on a bigger timescale, with a run to $100,000 nonetheless on the desk for 2022 for my part.
After $100,000+ then we get into [the] 2018-style prolonged bear market territory.”
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