Despite the excitement of the recent rally, cryptocurrency investors are still waiting for the volumes to reach desired levels. The cumulative volume is currently at $33 billion, indicating a weak demand. This suggests that buyers have reasons to be cautious. So, what do market experts think?
Bluntz, an anonymous crypto analyst, shared his latest assessment of the markets. Known for accurately predicting some major price movements in the past, he issued important warnings in his latest update. According to him, there might still be a risk of further downside for BTC and ETH prices.
“I’m not sure if this rise in BTC or ETH indicates a recovery from the bottom. I predict that BTC and ETH are completing their (5th) C wave and the next move will be downwards. I’m happy to search for the bottoms.”
Bluntz applies the Elliott Wave theory in his technical analysis. Based on a chart showing the future Ethereum prediction, he predicts that ETH will drop to $1,450, following a five-wave pattern. Elliott waves have often provided leading signals in identifying long-term price structures. If the same pattern repeats, ETH price could bounce back above $2,000 after reaching a bottom in this range.
But is it possible to invalidate this downside scenario? Certainly, critical levels being surpassed in Elliott formations can disrupt existing structures. This can reverse the bearish or bullish outlook.
“If ETH surpasses $1,804, which is the 1st wave region, we can see that this bearish thesis is invalidated. The invalidation of the downside for Bitcoin price can only occur with closing prices above $28,770.”
At the time of writing, the Bitcoin price is finding buyers above $27,200. While investors prefer to remain cautious, the fact that the price is holding the critical 200-day moving average is promising. Tomorrow, a decision to delay spot Bitcoin ETFs is expected, and if the SEC finds a valid reason, it is expected to appeal the case.
Although highly unlikely, witnessing the SEC giving up tomorrow could kickstart a period of rapid growth for cryptocurrencies.