An analyst who correctly called the bottom of the 2018 bear market is warning Bitcoin investors, saying BTC is in danger of breaching the $30,000 support level.

The person, who goes by the nickname Smart Contracter in the industry, told her 205,100 Twitter followers that Bitcoin’s recent surge from a low of $33,000 on Jan. 24 to a high of $45,000 on Jan. 24 was a major one seems to be a bull trap.

“BTC was unable to hold the 0.618 Fib level so it looks like a break above this downtrend line would have been a major bull trap.

Feels like a test of the downtrend and BTC may retest the $28,000 support in the near term.”

Source: Smart contractors/Twitter

At the time of writing, Bitcoin is changing hands at $35,402.

In December, with Bitcoin trading above $50,000, smart contracters predicted that BTC would see a sharp correction around $25,000.

“What if BTC breaks June low? I think this is similar to what price did at the April high, creating a false breakout before turning back the other direction. Also of note is that I maintained my bullish bias for too long and underestimated the severity and depth of this pullback.”

Source: Smart contractors/Twitter

The smart contracter appears to have based his analysis on the market structure of the Dow Jones Industrial Average as it traded in a wide range from 1998 to 2009 before breaking out and igniting a parabolic rally.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions

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