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The closely followed anonymous cryptocurrency analyst and trader known as Bluntz issued a warning for Bitcoin (BTC) following a failed breakout. The analyst also commented on Ethereum (ETH) and warned investors about the altcoin king.
Expecting a Decline in Bitcoin
Sharing his warning on social media, Bluntz indicated that Bitcoin is highly likely to fall below the recent five-month low of $53,485 recorded last week. This prediction came after Bitcoin’s price pulled back from the $60,000 level, which Bluntz viewed as a negative indicator.
At the time of writing, Bitcoin was trading around $57,000. The analyst, who regularly uses Elliott Wave theory in his technical analyses, suggested that Bitcoin could fall below $53,000 after forming a three-wave corrective pattern. According to Elliott Wave theory, price movements occur in a five-wave pattern during the main trend, while corrections occur in a three-wave pattern. This technical outlook supports Bluntz’s bearish view on Bitcoin’s short-term future.
Bluntz’s analysis is significant due to his large following and the potential impact of his predictions on market sentiment. Using the reputable technical analysis method of Elliott Wave theory adds weight to his prediction of a possible decline in the price of the largest cryptocurrency. Bitcoin’s recent price action, where it approached but failed to surpass the $60,000 level before pulling back, mirrors similar patterns seen in the past that typically precede further declines.
Warning for Ethereum
Moving on to Ethereum after Bitcoin, Bluntz expressed his expectation of a decline in the largest altcoin by market value. He suggested that Ethereum could fall below the support level of around $2,800, where it has been trading for over five months, before potentially rebounding. Ethereum is currently trading at $3,143. Bluntz’s bearish outlook on ETH aligns with the general cautious stance in the cryptocurrency market.
Regarding the potential approval of spot Ethereum exchange-traded funds (ETFs) in the US, Bluntz remains skeptical. While many expect the approval to be highly bullish for ETH, the analyst believes the market might first experience a sell-off, testing lower support levels before beginning to recover and rise significantly. This perspective serves as a serious warning for investors who might be overly optimistic about the immediate effects of a spot ETF approval.
