A Top Trader Predicts a Deep Corrective Move for Bitcoin
A prominent trader who accurately predicted Bitcoin’s bear market bottom in 2018 is now warning that the cryptocurrency may be on the brink of a significant pullback. According to the trader, known as Bluntz, Bitcoin’s recent rally is likely part of an ABC corrective move, and there is a possibility that BTC could drop as low as $22,376.
In a recent post on social media platform X, Bluntz stated that he is currently staying on the sidelines after Bitcoin failed to break through its psychological resistance at $30,000. While he acknowledges the possibility of new highs, Bluntz believes that strong resistance lies ahead.
Using Elliott Wave Theory in Technical Analysis
Bluntz utilizes the Elliott Wave theory in his technical analysis. This approach aims to predict future price action by analyzing crowd psychology as it manifests in waves. According to this theory, a bullish asset like Bitcoin may experience an ABC corrective wave after a significant upward movement, allowing it to consolidate gains before continuing its upward trajectory.
The Impact of Erroneous Reports and Current Price
On Monday, Bitcoin briefly surged above $30,000 due to inaccurate reports suggesting that the US Securities and Exchange Commission (SEC) had approved BlackRock’s bid for a spot-based BTC exchange-traded fund (ETF). However, Bitcoin has since retraced and is currently trading at around $28,478.
Hot Take: Proceed with Caution
While some traders may be optimistic about Bitcoin’s recent rally, top trader Bluntz advises caution. His analysis suggests that a deep corrective move could be on the horizon for BTC. As always, it’s essential to stay informed and make informed decisions when navigating the cryptocurrency market.
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