One of the internet’s most followed crypto traders predicted that bitcoin would undergo a correction and warned that there may be more price contraction ahead.
Bitcoin in Need of a Correction
In a podcast released on May 29, just a day before bitcoin’s massive correction, crypto trader Josh Olszewicz predicted that the currency was overdue for a pullback. Olszewicz claimed that bitcoin had been too hot during its price run from $4000 in April to nearly $9000 by the end of May, and was in dire need for the price to take a dip.
In an amazing display of foresight, the trader said he expected bitcoin to undergo a drop in valuation that would ultimately prevent another bear market from occurring,
“It’s to the point now where it’s like if we don’t pull back, the pullback eventually that will come will just be super painful.”
Olszewicz went on to explain that there was no specific reason for the correction in terms of bitcoin adoption or usability, other than technicals pointing to an overdue market correction.
On cue, bitcoin plunged more than 8 percent on May 30, shedding over $800 in the span of hours after briefly reaching the critical $9000.
The number one cryptocurrency by market capitalization struggled to regain its former price rally over the weekend, trading in a range around $8500. On June 3, the price took another plunge, falling over 5 percent to a monthly low of $8200.
Short Term Uncertainty, Bullish Trend Ahead
Olszewicz predicted that there may be more pain ahead for bitcoin and the general crypto markets if the original correction did not suffice. However, Olszewicz finds–in general–price corrections to be healthy for the broader trend of a bull market. In addition, he believes that the crypto is heading into a bull market, with bitcoin prices above $6400 being making for a strong signal. Olszewicz also looks to the 200-day exponential moving average (EMA) as an indicator for shifting trends,
“Anything above $6,400 is definitely a bull trend. Anything above the daily 200 EMAs, on all these coins, is definitely a new bull trend. Anything with a bullish 50/200 cross on the daily is a bull trend,” he added, in regards moving average crossovers.
While the technicals may be murky on predicting an exact price for bitcoin in the short-term, Olszewicz reports that the crypto markets appear absolutely bullish moving forward,
“As we sit right now, there’s just no way you can look at this and say anything other than this is clearly a bull trend.”
While bitcoin hovers above $8000, TRON (TRX) was the surprise gainer over the weekend. Following a series of tantalizing tweets by founder Justin Sun, the price of TRX rose 40 percent in the span of days. On June 3, Sun revealed that his big news for TRON was a lunch sit-down with famed investor Warren Buffett–a privilege Sun bid $4.5 million to obtain.
While Buffett has made himself infamous in crypto circuits for routinely bashing bitcoin, it’s possible the young TRON founder will be able to sway his mind towards digital assets.