An analyst known for making timely crypto calls is warning that Bitcoin (BTC) is suddenly flashing a bearish signal.
Pseudonymous analyst Bluntz tells his 337,700 followers on X that Bitcoin may be forming a classic bear flag pattern.
Bearish flag patterns are used in technical analysis to forecast abrupt moves to the downside. They are formed when price consolidates upwards after a strong downtrend, but fails to break a key support level.
“Not exactly a fan on this channel on BTC, could easily turn into a bear flag if it falters here.”
Looking at his chart, the analyst suggests BTC needs to convincingly remain above the $70,000 range to invalidate the bearish signal.
He also predicts that Bitcoin will eventually retrace to the Fibonacci retracement level at $51,299.
Fibonacci retracement levels are used in technical analysis for determining an asset’s support and resistance levels.
“I think at this stage, I’m probably going to be leaning towards Bitcoin eventually breaking down here and pushing down into a fresh new low. I think that will most likely wick into this major 0.618 level, and then most likely also put in some high timeframe bull divs (divergences) as well.”
Bitcoin is trading for $71,575 at time of writing, up more than 4% on the day.
Next up, Bluntz warns that Ethereum (ETH) rival Solana (SOL) is not done correcting.
“Expecting another low on SOL and then back to bull posting.”
SOL is trading for $85 at time of writing, up nearly 7% on the day.
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