Bitcoin‘s (BTC) 2018 bear market bottom, which has been closely monitored by crypto analyst Bluntz, who predicted it in advance, may be preparing for a withdrawal of more than 20 percent, drawing attention to it and warning investors.
The Risk of ABC Wave in Bitcoin
Anonymous crypto analyst Bluntz said that Bitcoin seems to be standing on the edge of a cliff for now, after failing to break the psychological resistance at $30,000. According to the analyst, Bitcoin’s recent rally appears to be part of an ABC wave that could result in a drop to $22,376 for BTC:
BTC had a nice rise and reached my target price directly. I haven’t had such a smooth transaction in this volatile and disgusting market for a long time, but now I have withdrawn again. I’m not sure if we can reach new peak levels from here, I think this is a very strong resistance.
I am still aware that the rise could be a B wave, but I don’t have enough confidence to short it, but I want to stay on the sidelines for a while and see how it develops.
Bluntz’s prediction is based on the Elliott Wave theory, an approach that attempts to predict future price movements by following the crowd psychology that tends to move in waves. The theory suggests that a rising asset is expected to go through an ABC wave after moving up to consolidate its gains before the next rise.
Bitcoin’s Rise with Fake News
Bitcoin briefly rose above $30,000 on news that the US Securities and Exchange Commission (SEC) had given the green light to asset management firm BlackRock’s spot-based exchange-traded fund (ETF) application. It quickly withdrew after the news was proven false.
With the sharp rise followed by a sharp retreat, over $100 million in investor liquidation occurred. According to current data, Bitcoin is trading at $28,540, recording a 2.88 percent increase in the past 24 hours.
