Bitcoin(BTC) Price Might Plunge Back to $22k levels, Here’s Why

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The majority of coins are showing growth today, which is why the market is currently trading in the green. The market capitalization of all cryptocurrencies is currently $1.07 trillion, up 0.57% from yesterday. 

As of this writing, the largest cryptocurrency, Bitcoin, has increased by 0.84% during the past 24 hours. For the second time this year, Bitcoin has surpassed the $23k milestone. Experts claim that the barrier level for Bitcoin, which the digital currency broke through last month, was 23,400.

However, in expectation of Bitcoin falling as low as $22,000, the analyst Smart Contracter said that he switched to stablecoins last week. The trader asserts that Bitcoin is currently at a low enough price to justify re-entering the market now that it has reversed its recent upward trend from a high of roughly $24,200 to a range of around $22,700. His new BTC target is above $25,000.

“Leaning towards the W5 on BTC being underway, now taking out those $25,000 highs. This might be the final push higher on daily before we get a deeper decline into the next few months. Make the most of it in my opinion.”

The trader bases his analysis on the Elliot wave theory, which says that the psychology of traders frequently manifests itself on charts in predictable waves of highs and lows.

According to Smart Contractor, he is also starting to accumulate Ethereum (ETH).

“Interestingly ETH has pulled back from the highs in only 3 waves, finding support near 0.618. So ETH may be gearing up for another leg. Not only that, but ETH/BTC still looks bearish in my opinion, which means maybe BTC has bottomed here too, and outperforms. I’m slowly gaining exposure again.”

The trader, who is also positive on Dogecoin (DOGE), noted that it has been gaining ground on Bitcoin for several weeks. Bitcoin’s recent plunge below $23,000 was properly predicted by the trader, and he now claims he’s prepared to re-enter the market.