The price of Bitcoin continues to remain quiet within a narrow range over the weekend. For almost a month, the Bitcoin price has remained almost unchanged. We can see that the last four weekly candles are lined up like a thread. Despite short-term fluctuations, the BTC price, which has remained almost stable for over 30 days, has created new lows for some altcoins.
A well-known analyst who accurately predicted the bottom of the 2018 bear market has made some predictions about the current market situation. His previous successful forecast makes his new analysis even more valuable. The analyst, known by the pseudonym Bluntz, said that BTC likely formed a bearish setup after failing to break the $27,000 resistance last week.
According to Bluntz, the king cryptocurrency could move towards its 6-month low. The analyst points to an ABC corrective structure that indicates a target of $23,800.
“I don’t think it’s the ‘bottom’ yet because the structure doesn’t look right to me yet. I think we need to convincingly eliminate the low levels of $24,800 first and have the last 39-day price movement potentially be part of a larger sideways correction. I’m mostly in stablecoins and prefer to wait on the sidelines for now.”
Bluntz utilizes the Elliott wave theory, which tends to manifest in waves and is followed by crowds. The setups of this model made some experts overly confident in the previous major drop a few months ago. They predicted a significant drop based on the Elliott model, but the market suddenly took on a bearish structure.
At the time of writing, the BTC price, which is at $26,600, is unable to break the $27,000 resistance. The reason behind this is that short-term traders focus on realizing small profits at resistance levels due to the lack of volume.
Bluntz also monitors the performance of tech stocks Microsoft (MSFT), Apple (AAPL), and Nvidia (NVDA). According to the analyst, these stocks are signaling a potential decline on the three-month chart. The Fed’s current stance, oil targeting a three-digit price, and the DXY trio surpassing the 105 level also indicate the same thing. This situation could impact both the cryptocurrency and stock markets.