A top cryptocurrency strategist who has gained a large following on social media after accurately calling Bitcoin’s 2018 bear market bottom above $3,000 has revealed he believes the flagship cryptocurrency is set to enter a Santa Claus rally.
According to pseudonymous cryptocurrency analyst Blutz, Bitcoin has had a “very nice and healthy month long vertical accumulation” and often “sideways corrections build steam for the next leg up.”
Bitcoin’s price has surged more than 23% over the past month and is up over 160% so far this year amid renewed optimism surrounding the potential launch of a spot Bitcoin exchange-traded fund (ETF) in the United States. BTC is now trading at $43,000, up from around $18,000 a year ago.
To Bluntz, Bitcoin’s price could enjoy a run to the $46,000 mark and beyond during the expected upcoming Santa Claus rally.
Santa Claus rally refers to a sustained increase in prices around the Chrismas holiday near the end of the year. Such a rally may be a result by various factors, such as adjusting taxes before the year ends, a cheerful and hopeful mood among investors, and holiday bonuses coming in.
The pseudonymous analyst has said that he believes Bitcoin is amid a parabolic price rise that could see it near its all-time high in the first quarter of next year as it reaches $65,000, slightly below its record high of $69,000.
In a separate post on the microblogging platform X (formerly known as Twitter), Bluntz suggested investors should “start making mental notes” of their exit targets. Per his words words as “we approach and breach all time highs, the euphoria will kick in and inevitably make you revise those targets.”
He suggested investors should plan their exit strategy now “while we’re all still relatively level headed.”
Bluntz’s price prediction uses Elliott Wave theory, which according to Investopedia was developed by Ralph Nelson Elliott in the 1920s after he observed and identified “recurring, fractal wave patterns.”
These fractal wave patterns are based on the psychology of the masses. The Elliott Wave theory is usually interpreted based on five waves moving in the direction of a main market trend, which can be bullish or bearish, and by three corrective waves. The repetition of these patterns, theory suggests, allows the movements of asset prices to be predicted.
The theory is said to have gained notoriety when Elliott himself predicted the stock market bottom in 1935 after a 13-month correction.
Featured image via Unsplash.
