A widely followed crypto strategist says that the market bottoms are not yet in for Bitcoin (BTC) and Ethereum (ETH).
The pseudonymous analyst known as Bluntz tells his 223,000 Twitter followers that Bitcoin is likely going to dip down to the $24,000 level come June.
“Even though the low timeframes look good, the higher timeframes still look quite heavy. Can’t help but feel this ends up resolving as some kind of higher timeframe bear flag on BTC and ETH. Will be keeping a very keen eye on $28,200-$28,300 region, that is where I’d be watching for any kind of failure.”
Looking at his chart, the analyst indicates Bitcoin’s price action is forming a double three Elliott Wave pattern, with the waves labeled W, X, and Y in technical analysis. The trader labels the W and X waves and draws in the Y corrective wave that would plunge BTC down below the $24,800 level.
Bitcoin is trading for $26,326 at time of writing, down 3.2% during the last 24 hours.
According to the analyst, Ethereum appears to be forming a bear flag pattern, which is formed when two periods of decline are separated by a period of consolidating retracement and is likely to continue on a downtrend.
“Bear flag looking extremely likely now imo (in my opinion), I did think we would pop higher but with this selloff today I think it’s come sooner and things may get ugly quickly.”
The trader had previously warned of a “scam” bounce for ETH based on social media hype he reviewed.
“Just spent about 10 minutes browsing my feed and can say it’s an extremely low-quality timeline right now. It’s basically 90% shit posts with the occasional doom posting sprinkled in between. Can’t help but feel a scam pump is brewing.”
Ethereum is trading for 1,798, down 2.9% during the past 24 hours.
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Generated Image: Midjourney
