A top trader who nailed Bitcoin’s (BTC) 2018 bear market bottom is predicting another leg down for the crypto king.
Pseudonymous analyst Bluntz tells his 224,800 followers on the social media platform X that BTC has likely printed a bearish lower-high setup after it failed to take out its resistance at $27,000 last week.
According to the analyst, BTC is in the midst of an ABC corrective move that could push Bitcoin to a six-month low of around $23,800.
“I don’t think the ‘bottom’ is in yet because the structure just doesn’t look right yet for me. I think the $24,800 lows need to be convincingly taken out first and the last 39 days of price action potentially part of a larger sideways correction.
I have some skin in the game but mostly still in stablecoins and waiting on the sides for now.”
Bluntz is a popular practitioner of the Elliott Wave theory, an advanced technical analysis approach that attempts to predict future price action by following crowd psychology which tends to manifest in waves. According to the theory, a bullish asset may go through an ABC correction before potentially resuming its uptrend.
At time of writing, Bitcoin is worth $26,646.
Bluntz is also watching the performance of tech stocks Microsoft (MSFT), Apple (AAPL) and Nvidia (NVDA). According to the trader, the three large-cap tech names are flashing a potential bearish reversal signal on the quarterly chart.
“Quarterlies closing in a week and there’s some absolutely horrendous quarterly candles and [bearish divergences] forming on mega caps right now. Insert ‘this is fine’ gif.”
Generated Image: Midjourney