A trader who built his following after hitting the bottom of the Bitcoin (BTC) bear market in 2018 says the crypto king’s correction is likely not over.
The pseudonymous analyst Bluntz tells his 224,600 followers on the social media platform X that Bitcoin is currently trading within a bearish flag pattern, indicating that BTC is gearing up for another move to the downside.
“BTC [is] still shrinking since last week’s crash. No clear direction, but my bias is currently more sideways [and] then a new low.”
Earlier this month, Bluntz warned that Bitcoin could repeat the deep correction that took place in late 2019 and early 2020 when BTC collapsed from around $14,000 to $3,000. According to the crypto analyst, BTC has shown signs of weakness on the weekly chart, including a rising wedge pattern and a bearish divergence on the relative strength index (RSI), indicating that momentum is fading.
“The longer we stay here on BTC without bouncing, the more I feel we may be in for a crushing macro pullback similar to 2019.
It is clear that the momentum here is waning and it is becoming increasingly difficult to remain bullish.”
Based on the trader’s chart, he appears to be predicting that BTC could drop to $22,000.
At the time of writing, Bitcoin is trading at $26,143.
Looking at the total market capitalization of all crypto assets (TOTAL), Bluntz says the chart looks poised for a quick rebound before another correction en route to the $970 billion level.
“Waiting for a new low on TOTAL before thinking about longs.
New lows would also pave the way for quite a bit of bullish divergence on multiple coins.
However, I don’t see any setups that are worthwhile yet.”
At the time of writing, TOTAL is valued at $1.035 trillion.
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Generated image: Midjourney