Analyst Predicts Ongoing BTC Correction May Not Be Over
An online crypto analyst named Bluntz, known for accurately predicting the bottom of the Bitcoin bear market in 2018, suggests that the current Bitcoin (BTC) correction may continue for a while. With over 224,600 followers on social media platform X, Bluntz’s predictions and insights consistently influence market sentiment.
Forecasting BTC’s Price Movement
Bluntz observes that Bitcoin seems to be moving in a bearish flag pattern, a common chart pattern in technical analysis. This pattern typically occurs after a sharp price drop, followed by a consolidation phase with a slight upward bias. Bluntz believes this may indicate a new wave of downtrend.
Bluntz’s statement:
“BTC [is] still contracting since last week’s crash. No clear direction but my bias for the moment is more sideways [and] then a new low.”
Source: Bluntz/X
A Warning from the Past
Based on past trends, Bluntz warned his followers this month that Bitcoin may go through a deep correction resembling that of late 2019 and early 2020. During that period, BTC experienced a major collapse from roughly $14,000 to $3,000. Such market dynamics tend to develop from certain telltale signs, like a rising wedge pattern and a bearish divergence on the relative strength index (RSI), which signify decreasing momentum.
Bluntz’s insights:
“The longer we stay down here on BTC without bouncing the more and more I feel like we might be due for a soul-crushing macro pullback similar to 2019.
It is clear momentum is waning here and it is remaining harder and harder to stay bullish.”
Source: Bluntz/X
Potential BTC Price Drop
Based on Bluntz’s analysis and charting, he infers that BTC might drop to a level as low as $22,000. Currently, Bitcoin is trading at approximately $26,143.
Insights into the Total Crypto Market Cap
Taking into account the total market cap for all cryptocurrencies (referred to as TOTAL), Bluntz believes it is set for a brief uptick before succumbing to another correction, leading it down to a $970 billion level.
Bluntz’s forecast for TOTAL:
“Waiting for a new low on TOTAL before contemplating any longs.
New lows would pave the way for quite a lot of bullish divergence on multiple coins as well.
I can’t see any setups worthwhile taking just yet though.”
Source: Bluntz/X
The current value of TOTAL is approximately $1.035 trillion.
Generated Image: Midjourney
