Crypto Analyst Who Accurately Called 2018 Bitcoin Bottom Predicts Massive Correction for Ethereum Competitor Terra (LUNA)
A closely followed crypto strategist who correctly called the Bitcoin (BTC) bottom during the 2018 bear market is predicting a deep correction for decentralized finance payment network Terra (LUNA).
Pseudonymous crypto analyst Smart Contracter tells his 207,000 Twitter followers that LUNA has completed its five-wave rally and is now en route to a full-blown bearish reversal.
“I think LUNA finally put in a long-term top. Clear five-wave rise on weekly with a bearish engulfing to confirm the top.
This will come down a minimum of 50% or so in my opinion.”
Smart Contracter subscribes to the Elliott Wave theory, a technical analysis approach that predicts future price action by following crowd psychology that tends to manifest in waves. According to the theory, an asset goes through a five-wave cycle before a major trend reversal.
Looking at the analyst’s chart, LUNA appears to be headed to $25, representing a downside potential of nearly 70% from its current price of $83.05.
The crypto strategist is also looking at Bitcoin, which he says is in the midst of a five-wave correction on the lower timeframe.
“BTC [is] now in the process of an impulsive five-wave decline on four-hour [chart], so expecting a nice relief bounce to $45k or so in the coming days, then further downside. $37-$38k is new key support.”
At time of writing, Bitcoin is trading $39,709.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong