An analyst who accurately predicted the bottom of the 2018 bear market for Bitcoin (BTC) suggests that the ongoing correction for the cryptocurrency is not yet complete.
Analyst Bluntz, anticipates a brief rebound for Bitcoin before it continues its downward trend. The trader points to the bearish chart of Bitcoin as an indication that more negative news could be on the horizon for the crypto market.
Bluntz states, based on the current price action, it seems probable that Bitcoin will drop below $24,000. The four-hour chart shows a sideways-running triangle pattern, with the overall trend currently pointing downward.
now that PA has unfolded a bit longer i think sub 24k is probably likely, defo feels like some kind of sideways running triangle forming here on 4h with the underlying trend currently down.
RR is gone now but defo looking to reshort any bounce up over the next day, just the fact… pic.twitter.com/g6CQa7NHmg
— Bluntz (@Bluntz_Capital) June 12, 2023
While the risk/reward ratio is no longer favorable, he will be monitoring any upward bounce over the next day to initiate short positions. The fact that crypto is showing this behavior while other risk-on assets are surging suggests that there may be more unfavorable news in the near future according to him.
He also acknowledges the possibility of a bullish scenario unfolding in the form of a bull flag on a higher timeframe. However, the analyst believes that Bitcoin will likely reach lower levels before any potential upward movement occurs.
Currently, a stand-off between the #btc
monthly MACD and its signal line.In macro terms, reduced volatility/ an increasingly stable price.
Technically, on the longer time-frame looks poised to move higher from just below the zero line.
Bullish and still in the LGC buy… pic.twitter.com/MBYFxNjWs7
— dave the wave🌊🌓 (@davthewave) June 12, 2023
On the other hand, Dave the Wave, another crypto strategist, is focusing on Bitcoin’s monthly chart during the market downturn. Notably, Dave accurately predicted Bitcoin’s collapse in May 2021. He now suggests that Bitcoin appears to be bullish in the long term based on the monthly moving average convergence divergence (MACD) indicator.
“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.”
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