A popular crypto analyst and trader is offering his forecast on Bitcoin (BTC), Ethereum (ETH) and altcoins amid a dip in prices.
Pseudonymous analyst Bluntz tells his 222,400 Twitter followers that his prediction on Tuesday that BTC would hit a new 2023 high within hours had failed to materialize.
Bluntz had predicted that Bitcoin would surpass this year’s high of $31,000 within 24 to 36 hours. With Bitcoin trading at $28,079 at time of writing, down by 8% over the past week, the analyst now says his prediction is no good.
The analyst also says that ETH has moved back into a 300-day range, suggesting that Ethereum’s recent breakout could be a bull trap.
“Ate some losses and closed off a bunch of positions but I feel a lot of weight off my shoulders.
Don’t particularly feel like being a stubborn martyr and holding losses with Ethereum now well and truly back into the major range we had just broken out of.”
Turning to altcoins, the pseudonymous crypto analyst says that they have exhibited bearish swing failure patterns (SFP), a technical formation that signals a reversal in trend.
According to Bluntz, the price appreciation that some altcoins have experienced over the past month were bear market rallies, which are short-term upswings that occur in a macro downtrend.
The analyst, who usually uses the Elliott Wave theory in his technical analysis, further says that these short-lived upswings could have been part of a corrective three-wave ABC pattern in a downtrend, where wave B is typically a short-term bounce to be followed by a deeper move down.
“Whole bunch of altcoins flashing weekly bearish SFPs. Avalanche (AVAX) is one and I’ll try to dig up some more.
But I think in regards to altcoins, a lot of these moves up over the last month could have been B waves, with much deeper declines still to come.
These are feeling like warning signs to me.”
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