A well-known cryptocurrency analyst who correctly forecasted the bottom of the 2018 bear market to be around $3,200 months in advance has warned his followers that two major cryptocurrencies, Ethereum ($ETH) and $BNB), are both displaying negative indications.
According to the fictitious analyst known as Smart Contractor on the microblogging site Twitter, Ethereum’s price chart displays a negative continuation pattern that is identical to one that has previously been observed, indicating that things are “certainly not looking good.”
The expert stated that a “multi-month chop” is imminent and that the “easy phase” of recent months is ended. According to Daily Hodl, the analyst also examined the price chart of Ethereum relative to the most popular cryptocurrency, Bitcoin, and saw that momentum has begun to ebb as the pair already broke through its diagonal support.
Smart Contractor pointed out that $BNB, the native token of the Binance Chain and cryptocurrency exchange Binance, is displaying a negative head-and-shoulders pattern as a result of US authorities’ targeting of Binance. According to Investopedia, a certain chart formation called a head and shoulders pattern is utilized in technical analysis to foretell a change from a bullish to a negative trend. The pattern appears when the price of the stock rises to a peak, drops to the base, rises above the first peak to create the “head,” drops to the base, then rises to the level of the second peak.
This pattern indicates the conclusion of an upward trend and is regarded as one of the most accurate patterns for trend reversals. That can be seen on the price chart for BNB at a time when authorities have clamped down on Binance’s stablecoin, BUSD, and there are rumors that BinnaceUS may be next.
It’s important to note that Smart Contracter gained notoriety for foreseeing that bitcoin would eventually trade around $3,200 at the end of the bear market that saw its price fall from an all-time high near $20,000 in June 2018. As BTC reached the desired price in December of that year, the prediction was almost exact.
