A widely followed analyst and trader is issuing a warning on Bitcoin (BTC) after the flagship cryptocurrency witnessed a failed breakout.
The analyst pseudonymously known as Bluntz tells his 264,700 followers on the social media platform X that there is a “good chance” that Bitcoin will fall below the five-month low of around $53,485 recorded last week.
Bluntz further says that Bitcoin’s retracement from within a touching distance of the $60,000 level is not a “good sign” and appears to mimic similar price action last week that preceded the crypto asset’s fall.
Bitcoin is trading at $58,444 at time of writing.
From the pseudonymous analyst’s Bitcoin chart on the four-hour time frame, it appears that Bluntz, who regularly employs the Elliott Wave theory in his technical analysis, sees Bitcoin falling below $53,000 after forming a three-wave corrective pattern. According to the Elliott Wave theory, the main price trend occurs in a five-wave pattern while a correction takes place in a three-wave pattern.
Source: Bluntz/X
Turning to Ethereum (ETH), the pseudonymous analyst and trader recently expressed bearish sentiment on the second-largest crypto asset by market cap. Bluntz said that Ethereum could fall below the support level at around $2,800 which has held for over five months before bouncing back up.
Source: Bluntz/X
On the impact the potential approval of spot Ethereum exchange-traded funds (ETFs) in the US might have on ETH, Bluntz said,
“Everyone’s talking about it, everyone’s expecting it [spot Ethereum ETFs] to be this giga-bullish ETH news. So I think what will most likely happen in my opinion is ETH will sell off first, take the lows, f**k everyone over and then start to get bid up heavily.”
Ethereum is trading at $3,143 at time of writing.
Generated Image: Midjourney
