The trader, known as Jack Sparrow, told his 209,100 Twitter account that Bitcoin (BTC) is preparing to initiate the fifth and final wave of the bull market, assuming the asset follows a similar pattern to its cycles. boom of 2013 and 2017.
“Based on the previous two bitcoin cycles, the current cycle is short of a top and every final fifth wave originates from the previous two green arrows. Exactly where we are positioned right now.
Trader’s analysis is based on Elliott Wave Theory, an approach that technical analysts use to make predictions about future price action based on the psychology of crowds that tend to manifest in waves. . According to theory, a fifth wave represents the final stages of a bull market, in which an asset takes off before reversing its trend.
Jack Sparrow says he’s positioning himself long-term for the possibility of BTC’s meteoric rise to $ 380,000.
As for the main smart contract platform Ethereum (ETH), the crypto strategist says he is looking to accumulate ETH as it recovers key levels against Bitcoin.
“Will be on the lookout for ETH to add more tokens to each claim of a red zone. “
Looking at the ETH / USD chart, Jack Sparrow says the pair is on a strong bullish trend in the lower time frames and could climb back up to $ 3,050.
“I want to sleep, but I see this graphic and I realize that there is a trade to be made at all times now. “
At the time of writing, Ethereum is trading at $ 2,541, above Jack Sparrow’s last resistance line at $ 2,420.
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Image en vedette: Shutterstock / Sergey Nivens