A widely followed crypto trader is skeptical of the recent crypto bounce that saw Bitcoin (BTC) and Ethereum (ETH) climb by over 5% each.
Pseudonymous analyst Bluntz tells his 224,500 followers on the social media platform X that the two largest crypto assets by market cap have more downside potential.
“I’m still not 100% sold on this move up being a low on BTC or ETH.
I still think one more leg down needs to happen to complete a (5th) wave of C for BTC and ETH before I’ll be happy to call [the] bottoms.”
Bluntz applies the Elliott Wave theory in his technical analysis. Based on a chart depicting his forecast of Ethereum going forward, he appears to suggest that ETH is on the verge of completing a five-wave pattern (marked 1, 2, 3, 4, 5) to a price of $1,450.
On Bluntz’s chart, the five-wave pattern is nested within a bigger three-wave pattern (identified as A, B, C), which is also on a downward trend.
On what could invalidate his bearish forecasts for both Bitcoin and Ethereum, Bluntz says
“Invalidation of this thesis is if we break $1,804 for ETH or $28,770 for BTC as wave 4 can’t go within wave 1 territory.”
Bitcoin is trading at $27,385 at time of writing while Ethereum is changing hands at $1,719.
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