A popular crypto analyst and trader believes that Bitcoin (BTC) and Ethereum (ETH) are poised for huge breakouts amid the bearish sentiment in the digital asset markets.
The pseudonymous analyst known in the industry as Smart Contracter, tells his 154,900 followers that Bitcoin is forming a bullish pattern indicating that a move to the upside is on the horizon.
“To me, I see a higher low within a bullish flag forming. I’m still bullish on BTC from these levels.”
According to Smart Contracter’s chart, Bitcoin must take out the pattern’s resistance at $35,000 to ignite a rally to $40,000.
Looking at Ethereum, the crypto trader also believes that ETH is establishing a bullish higher low setup at $2,000, and it is now poised to rally to just below $3,000 for a 40% surge.
“Five up and now ABC down on ETH/USD. I think we will form a higher low and continue up from here. However, invalidation is still below the $1,650 capitulation wick.”
Smart Contracter uses the Elliott Wave technique, a branch of technical analysis that predicts future price action based on crowd psychology that tends to manifest in waves. According to the crypto trader, ETH has completed the ABC corrective pattern and is now ready to launch a new wave up.
The widely-followed crypto strategist is also keeping a close watch on the decentralized finance (DeFi) sector, which he says is performing better than the rest of the market. The trader adds that he has his eye on four altcoins in the nascent space.
“DeFi has been holding up the strongest during the BTC chop.
It’s definitely looking like the fastest horse at the moment.
SUSHI (SushiSwap), SNX (Synthetix), Aave, UNI (Uniswap).”