The Bitcoin Trader Who Accurately Predicted the 2018 Bottom Warns of a Possible Repeat of the 2020 Collapse
A trader who accurately called the bottom of the bear market for Bitcoin in 2018 is now warning that the flagship cryptocurrency could replicate its price action from 2020, when it plummeted from $10,000 to $4,000 in just a few weeks. The pseudonymous analyst, known as Bluntz, believes that Bitcoin has already hit a cycle bottom at around $15,000. However, he also suggests that there is a possibility of BTC dropping further to $19,000 before entering a full-fledged bull market next year.
Bitcoin’s Current Price and Market Analysis
Currently, Bitcoin is trading at $27,612, experiencing a decline of over 1% in the last 24 hours. Bluntz is closely monitoring the TOTAL chart, which tracks the market capitalization of all crypto assets. According to him, TOTAL appears poised for another downturn after completing an ABC bounce and forming a bearish lower-high setup.
Using Elliott Wave Theory for Analysis
Bluntz utilizes the Elliott Wave theory in his analysis. This technical analysis approach attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to this theory, a bearish asset may go through an ABC move to the upside before continuing its downtrend. At present, TOTAL is trading at $1.05 trillion.
Avalanche’s Bounce and Hack Incident
In regards to Avalanche (AVAX), Bluntz believes that the altcoin’s bounce is over after failing to break resistance at around $11. This conclusion comes after the recent hack of Stars Arena, an Avalanche-based social finance app, which resulted in a loss of $2.9 million worth of AVAX. Currently, AVAX is valued at $9.56, reflecting a decline of over 4% in the past day.
Hot Take: A Warning of Potential Bitcoin Collapse
The trader who accurately predicted Bitcoin’s 2018 bottom is cautioning that history could repeat itself with a potential collapse similar to 2020. While he believes Bitcoin has already hit a bottom, he suggests there is a chance it could drop further before entering a bull market in 2022. With Bitcoin currently trading at $27,612 and showing signs of potential downturns, it is crucial for investors to stay vigilant and monitor market indicators closely. Additionally, Bluntz’s analysis of Avalanche highlights the risks associated with altcoins and recent security breaches. Investors should exercise caution when investing in these assets.
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