A trader who hit the bottom of Bitcoin’s (BTC) bear market in 2018 believes the crypto king is gearing up for a more than 20% pullback.
Pseudonymous analyst Bluntz tells his 225,200 followers on social media platform
According to the analyst, Bitcoin’s recent rally appears to be part of a corrective ABC move that could send BTC down all the way to $22,376.
“Nice increase on BTC overnight, straight into my target price. I haven’t had such a smooth transaction in a long time in this choppy, disgusting market, but I’m now out of the loop again. I’m not sure we can just shoot to new highs from here; this will be a pretty strong resistance in my opinion.
I’m still acutely aware that this move up could be a B wave, not enough conviction to stay short, but I’m happy to be sidelined again for a while and see how this unfolds.
Bluntz uses Elliott Wave theory in his technical analysis, an approach that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bullish asset may witness an ABC correction wave after a rise to consolidate its gains ahead of the next rise.
On Monday, Bitcoin briefly rose above $30,000 following erroneous reports that the U.S. Securities and Exchange Commission (SEC) has greenlit BlackRock’s bid for a spot-based BTC exchange-traded fund (ETF).
Bitcoin has since retreated and is trading at $28,478 at the time of writing.
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Generated image: Midjourney