An analyst who correctly called the bottom of Bitcoin’s (BTC) bear market in 2018 is predicting a deeper downward move for the crypto king.
Pseudonymous analyst Bluntz tells his 223,600 Twitter followers that BTC appears to have printed a bearish lower high setup on the four hour chart.
According to Bluntz, BTC’s price action on the lower time frame suggests that the crypto king has lost momentum and now appears poised for an ABC correction that could send Bitcoin below $28,000.
“Anger four hour formation here on BTC. I’m updating my opinion a bit and now expecting a deeper drop, a little bit beyond just a simple $29,000 sweep, now thinking more about (a move into the) $27,000 zone.
Should Bitcoin follow the trader’s script, the analyst foresees an abrupt turnaround for BTC after hitting its downside target. According to the trader’s chart, the reversal is likely to trigger a rally that pushes BTC above its resistance at $31,500 on its way to around $33,800.
Fellow crypto analyst Inmortal also sees BTC briefly breaking the USD 30,000 psychological support before regaining its bullish momentum. According to the trader, the move below the support is likely to be a bear trap as he expects BTC to reverse immediately and rise towards USD 32,000.
“> Early week dump to break support
> People go short
> They get stuck
> Then we try to extend the chargeback before the squeeze
That is a setup that I long for.”
Meanwhile, crypto strategist Rekt Capital believes that Bitcoin’s current consolidation is just another phase of re-accumulation that will eventually see Bitcoin go up.
“Maybe if we are patient we will realize that BTC is in a different re-accumulation structure, and that is only a matter of time.”
At the time of writing, Bitcoin is trading at $30,603.
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