Pseudonymous trader Bluntz tells his 233,200 followers on the social media platform X that BTC and ETH appear to be in the midst of an ABC corrective pattern.
Bluntz is a popular practitioner of the Elliott Wave theory, a technical analysis method that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset tends to witness an ABC correction wave before igniting the next leg up.
The analyst says that the price action of BTC and ETH over the last week or so suggests that both crypto assets may be positioning for the last leg down of the ABC pattern.
“Have had a phenomenal month but BTC and ETH do look a bit worrisome here in my opinion. Time to chill and see how the next few weeks unfold.
I really toned back my leveraged positions the last few days. I think a lot of this slow grind-up over the last week on BTC and ETH was likely B waves.”
The analyst shares a chart that shows BTC pulling back to as low as $39,000.
At time of writing, Bitcoin is trading for $43,523.
As for Ethereum, the analyst predicts it can drop to $2,000.
At time of writing, ETH is worth $2,272.Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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