An analyst who correctly called Bitcoin’s (BTC) 2018 bear market bottom is predicting a deeper move to the downside for the crypto king.
Pseudonymous analyst Bluntz tells his 223,600 Twitter followers that BTC appears to have printed a bearish lower high setup on the four-hour chart.
According to Bluntz, BTC’s price action on the lower timeframe suggests that the crypto king has lost momentum and now looks poised for an ABC correction that could send Bitcoin below $28,000.
“Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now.”
Should Bitcoin follow the trader’s script, the analyst foresees an abrupt reversal for BTC after hitting his downside target. According to the trader’s chart, the reversal will likely trigger a rally that pushes BTC above its resistance at $31,500 en route to around $33,800.
Fellow crypto analyst Inmortal also sees BTC briefly breaking the psychological support at $30,000 before regaining its bullish momentum. According to the trader, the move below the support will likely be a bear trap as he expects BTC to immediately reverse and rally toward $32,000.
“> Early week dump to break support
> People go short
> They get trapped
> Then we try to long the reclaim before the squeeze
That’s a setup I would long.”
Meanwhile, crypto strategist Rekt Capital believes that Bitcoin’s current consolidation is just another re-accumulation phase that sets up Bitcoin for an eventual burst to the upside.
“Maybe if we’re patient, we’ll realize BTC is in another re-accumulation structure, and it’s only a matter of time.”
At time of writing, Bitcoin is trading for $30,603.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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