An analyst who nailed the 2018 bear market bottom for Bitcoin (BTC) believes that the crypto king’s correction is not yet over.
Pseudonymous crypto strategist Bluntz tells his 223,000 Twitter followers that he expects Bitcoin to go on a quick bounce before resuming its downtrend.
According to the trader, Bitcoin’s bearish chart suggests that more bad news stories could be in store for the crypto space.
“Now that price action has unfolded a bit longer, I think sub-$24,000 is probably likely. It definitely feels like some kind of sideways-running triangle forming here on the four-hour (chart) with the underlying trend currently down.
Risk/reward is gone now but definitely looking to re-short any bounce up over the next day. Just the fact that crypto is trading like this while other risk-on assets are pumping probably tells me there’s more bad news looming.”
Although Bluntz is short-term bearish on Bitcoin, he also thinks that BTC could possibly be forming a bull flag on the higher timeframe. According to the analyst, the bullish continuation pattern could eventually play out, but he still thinks that BTC is en route to lower levels first.
Meanwhile, fellow crypto strategist Dave the Wave is keeping an eye on Bitcoin’s monthly chart amid the market downturn. The analyst, who called Bitcoin’s May 2021 collapse, says that BTC looks long-term bullish as its monthly moving average convergence divergence (MACD) indicator gears up to move above a level that has previously signaled the start of a new bull market.
Traders keep a close watch on the MACD as it could signal potential trend reversals.
Says Dave the Wave,
“Currently, a stand-off between the BTC monthly MACD and its signal line.
In macro terms, reduced volatility/an increasingly stable price.
Technically, in the longer timeframe, (MACD) looks poised to move higher from just below the zero line.
Bullish and still in the logarithmic growth curve buy zone.”
At time of writing, Bitcoin is worth $25,935.
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