The current cryptocurrency market is in a good place, with Bitcoin continuing to test $10,000 and Litecoin testing a new all time high. However, according to popular Elliott Wave technical analysis, cryptocurrencies could experience a deeper pullback according to trader and analyst Ronnie Moas.
Ronnie Moas, founder at Standpoint Research, is a respected analyst and cryptocurrency commentator. According to his analysis, the cryptocurrency market could be set for a deeper pullback as $5,800 is quite possibly the beginning of a large sell-off.
He notes that while Bitcoin has risen from $3,900 to $9,500 in the recent bull market with small pullbacks occurring along the way, cryptocurrencies will most likely fall back to $5,800 and potentially even lower before experiencing another bull run. He also believes that 2018 could be the year crypto finally takes off, as the market is going through a phase of consolidation.
His thoughts on what lies ahead include:
We are now in a consolidation phase for the cryptocurrency markets. Given that Bitcoin has seen a number of 8, 9 and 10 percent pullbacks in the past, I think it is important to note that we may see another one or two percent pullback before making any moves. As long as Bitcoin doesn’t trade over $15,000 again before [the pullback] happens then I think we are on track.
The market analysis comes amidst optimism in the cryptocurrency sector after a three-and-a-half-month bear market started in late January. Interest is rising among firms and investors alike as regulatory clarity emerges over exchanges and trading platforms.
What is Cryptowze?
Ronnie Moas started out as an employee of McKinsey & Company, and now runs his own investment firm called Standpoint Research. For two decades, he has been analyzing stocks and calculating the odds of a rise or fall.
Adding to his credentials, Moas is also credited with being one of the first analysts to ring alarm bells around the $1,700 billion Dot Com Bubble in the 1990s.
However, it is important to note that his forecasts are not always correct. In late 2011, Moas predicted that Apple’s stock could hit $700 within a year – a prediction that contradicted many other financial experts who saw Apple as overvalued. Today Apple shares are worth over $180.
Why is Moas Watching Cryptocurrencies?
“I am watching Bitcoin because it is the first of what I think will be a whole new generation of cryptocurrencies. I feel that there are significant opportunities for investors who can take a long-term view, as well as those who are looking to make short-term profits.” – Ronnie Moas  – Founder at Standpoint Research
Ronnie Moas’s predictions on Bitcoin and the cryptocurrency markets were not always accurate. In December 2017, he predicted that prices would reach $50,000 in 2018 – only to see them shoot up as much as 15,000% before crashing back down.
Elliott Wave?
If you are a trader or investor, chances are you have come across Elliott Wave in your journey. The term comes from an investor by the name of Ralph Nelson Elliott who first came up with the theory in the 1930s.
Famed investor Warren Buffet is a fan of Elliott Wave and often uses it to predict how assets will move in the market.
Stochastic?
A stochastic indicator is an oscillator used in technical analysis to measure the location of a security’s price relative to its historic high-low range. A stochastic provides information on market momentum and can be used to tell if a market is trending or range-bound by comparing its current value to previous readings over time.
