A prominent cryptocurrency analyst, Bluntz, has expressed skepticism about the recent upward trend that has seen Bitcoin and Ethereum prices rise more than 5%. The pseudonymous analyst told His more than 224,000 Twitter followers warn that major crypto assets may face further slumps.
Applying the Elliott Wave theory in his analysis, Bluntz predicted that Ethereum is about to complete a five-wave pattern. According to him, Ethereum will drop to USD 1,450 on completion of the wave pattern marked 1, 2, 3, 4 and 5.
Bitcoin and Ether could take more recession before rebounding
In Bluntz’s technical analysis, the five-wave chart pattern exists within a larger three-wave pattern, marked A, B, and C. And this three-wave pattern is also in a downward trend. He noted that ETH and BTC must complete this wave pattern before a bullish rebound.
While this analysis predicts a bearish trend for ETH and BTC, Bluntz believes there is potential for a bullish breakout. He said the theory becomes invalid if ETH breaks above $1,804 or Bitcoin surpasses the $28,770 price level.
Bluntz noted:
Invalidation of this statement is if we break $1,804 for ETH or $28,770 for BTC, because wave-4 cannot go inside wave-1 territory.
plans to expect more downturns for ETH and BTC; Any hope of recovery?
Meanwhile, Bitcoin and Ethereum are showing a slightly bearish outlook at the time of writing. Bitcoin is trading at $27,211, down nearly 1%, while Ethereum’s price is down 0.89% to $1,704. Bitcoin has also been under bearish pressure for the past seven days after falling off the $29,000 support level on Aug. 16.
As the bears continued, the flagship cryptocurrency traded within the $26,000 price level, occasionally falling back to $25,900. The downturn was in line with bearish sentiment in the cryptocurrency market over the past few days.
However, on August 29, news came from the court ruling in favor of Grayscale Investment in its case against the US SEC broke out. This news created a buzz in the crypto market, leading to an increase in the market cap.
As a result, Bitcoin recorded a sharp spike that brought its value back to the $28,000 price. At the time, the price of BTC was up 8% from a week low of $25,860 to a high of $28,010. But the bulls couldn’t keep up the momentum as Bitcoin rapidly reversed, dropping to $27,394.
Bitcoin is now consolidating around the USD 27,000 price zone, anticipating a bullish turn that will spark a rally.
Ethereum Market Outlook
Ethereum also suffered a similar fate to Bitcoin, showing the same chart pattern and price movement over the past week. The second-largest cryptocurrency by market capitalization remained in a bearish trend, in line with the broader crypto market.
The price of Ether fell from the USD 1,800 support on August 17, accompanied by prolonged bearish momentum that pushed the price towards USD 1,600.
Like Bitcoin, Ethereum reacted to the market’s brief recovery, rising above $1,740 on August 29. Although ETH’s rally has reversed, it maintains a price level above $1,700, holding well over 2% of last week’s gains. However, ETH’s latest moves indicate that the bulls are on a recovery path.
Featured image from Pixabay and chart from TradingView.com