Bitcoin (BTC) Analyst Bluntz Warns of Drop Below $53K After Failed Breakout Attempt
- WBOYOriginal
- 2024-07-18 16:10:50356browse
A widely followed analyst and trader is issuing a warning on Bitcoin (BTC) after the flagship cryptocurrency witnessed a failed breakout.
A widely followed crypto analyst is warning that Bitcoin (BTC) could be poised for a drop below recent lows.
The analyst, known as Bluntz, shared his outlook with his 264,700 followers on the social media platform X. According to Bluntz, there’s a “decent chance” that Bitcoin will breach the five-month low of around $53,485, which was set last week.
Bluntz highlighted that Bitcoin’s failure to sustain its momentum after coming within touching distance of the $60,000 level is not a “good sign.” He added that the price action appears to be mirroring a similar pattern last week, which preceded the crypto asset’s drop.
The flagship digital asset is currently trading at $58,444 at the time of writing.
Bluntz’s crypto analysis chart on the four-hour time frame seems to indicate that the analyst, who frequently incorporates the Elliott Wave theory into his technical analysis, anticipates Bitcoin falling below $53,000 after completing a three-wave corrective price pattern.
According to the Elliott Wave theory, the primary price trend unfolds in a five-wave pattern, while a correction manifests in a three-wave pattern.
Meanwhile, the pseudonymous analyst and trader recently expressed bearish sentiments regarding the second-largest crypto asset by market capitalization, Ethereum (ETH).
Bluntz stated that ETH could be set to drop below a support level of around $2,800, which has held for over five months before recovering.
Commenting on the potential impact of the approval of spot Ethereum exchange-traded funds (ETFs) in the US 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.”
At the time of writing, ETH is valued at $3,143.
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