A trader who built his following after nailing the 2018 bear market bottom for Bitcoin (BTC) says that the crypto king’s correction is likely not yet over.
Pseudonymous analyst Bluntz tells his 224,600 followers on the social media platform X that Bitcoin is currently trading within a bearish flag pattern, suggesting that BTC is setting up for a fresh move to the downside.
“BTC [is] still contracting since last week’s crash. No clear direction but my bias for the moment is more sideways [and] then a new low.”
Earlier this month, Bluntz issued a warning that Bitcoin could repeat the deep correction witnessed in late 2019 and early 2020 when BTC collapsed from around $14,000 to $3,000. According to the crypto analyst, BTC flashed signs of weakness on the weekly chart including a rising wedge pattern and a bearish divergence on the relative strength index (RSI), suggesting that momentum was fading.
“The longer we stay down here on BTC without bouncing the more and more I feel like we might be due for a soul-crushing macro pullback similar to 2019.
It is clear momentum is waning here and it is remaining harder and harder to stay bullish.”
Based on the trader’s chart, he appears to predict that BTC could fall to as low as $22,000.
At time of writing, Bitcoin is trading at $26,143.
Looking at the total market cap of all crypto assets (TOTAL), Bluntz says that the chart looks poised for a quick bounce before another correction en route to the $970 billion level.
“Waiting for a new low on TOTAL before contemplating any longs.
New lows would pave the way for quite a lot of bullish divergence on multiple coins as well.
I can’t see any setups worthwhile taking just yet though.”
At time of writing, TOTAL is valued at $1.035 trillion.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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