In the volatile world of cryptocurrency, Bitcoin (CRYPTO: BTC) could be facing an impending decline.
On Thursday, well-known trader Bluntz, who accurately predicted Bitcoin’s 2018 bear market bottom, shared his perspective, sparking discussions among his extensive following of over 224,000 users on the social media platform X.
“I see a potential bearish lower-high formation in Bitcoin’s trajectory, as it struggled to break the $27,000 resistance last week,” said Bluntz.
The trader added that he foresees Bitcoin plummeting to approximately $23,800 and reaching a new six-month low.
Expressing reservations about Bitcoin hitting its “bottom,” Bluntz mentioned, “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 must be convincingly taken out first, and the last 39 days of price action potentially part of a larger sideways correction.” He said he remains mostly in stablecoins while cautiously observing the market dynamics.
Employing the Elliott Wave theory, Bluntz analyzes future price movements by studying crowd psychology patterns. This method suggests that a bullish asset might experience an ABC correction before potentially recommencing its uptrend. As of the latest update, Bitcoin is trading at $26,646.
Bluntz also scrutinized the trajectories of major tech stocks, including Microsoft Corporation (NASDAQ: MSFT), Apple Inc. (NASDAQ: AAPL) and Nvidia Corporation (NASDAQ: NVDA), identifying potential bearish reversals in their quarterly charts.
“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,” Bluntz added.
At the time of writing, Bitcoin was trading at $26,584.13, about 1 percent up in the last seven days.
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