A crypto strategist known for accurately predicting the Bitcoin bear market bottom in 2018 says he believes the top cryptocurrency is poised for a significant correction as BTC continues to move in tandem with the stock market.
The pseudonymous analyst known as Smart Contracter says he is short-term bearish on both Bitcoin and stocks.
“Equities and BTC both look cooked. This is not re-accumulation, sorry.”
The trader’s current sentiments align with his previous analysis that Bitcoin and the S&P 500 have been “highly correlated” since the coronavirus pandemic reared its ugly head in February. He believes that both asset classes are in the midst of an ABC corrective wave, which is an Elliott Wave principle suggesting a temporary retracement in a bullish market. Once the pattern is complete, the asset will likely resume its uptrend.
btc and equites correlation.
i'ts hard to deny that since the feb corona virus top equites and btc have been HIGHLY correlated to each other.
I was bullish on btc here but am beginning to think a 5 wave move up and larger abc down may now be underway. pic.twitter.com/HQUqpHnHl7