An analyst who reached the bottom of the Bitcoin (BTC) bear market in 2018 believes that the crypto king’s correction is not over.
Pseudonymous crypto strategist Bluntz tells his 223,000 Twitter followers that he expects Bitcoin to rebound quickly before resuming its downtrend.
According to the trader, Bitcoin’s bearish chart is suggests that there may be more bad news stories in store for the crypto space.
“Now that the price action has lasted a bit longer, I think less than $24,000 is likely. It definitely feels like some kind of sideways triangle forming here on the four hour (chart) with the underlying trend currently down.
Risk/reward is now gone, but I’m definitely looking to go short again the next day. Just the fact that crypto is trading this way while other risky assets are pumping probably tells me more bad news is looming.
While Bluntz is bearish on Bitcoin in the near term, he also thinks BTC could potentially form a bull flag in the higher time frame. According to the analyst, the bullish continuation pattern could eventually materialize, but it still does thinks that BTC is heading for lower levels first.
Meanwhile, fellow crypto strategist Dave the Wave keeps an eye on Bitcoin’s monthly chart during the market’s downturn. The analyst, who cited Bitcoin’s May 2021 collapse, says BTC looks like bullish in the long run, as the monthly moving average convergence-divergence indicator (MACD) moves up to break above levels that previously heralded the start of a new bull market.
Traders keep a close eye on the MACD as it could signal potential trend reversals.
Says Dave the Gulf,
“Currently, there is a deadlock between BTC monthly MACD and its signal line.
In macro terms, volatility decreased/increasingly stable price.
Technically, (MACD) looks poised to move higher from just below the zero line in the longer time frame.
Bullish and still in the buy zone of the logarithmic growth curve.”
At the time of writing, Bitcoin is worth $25,935.
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