A trader who hit the bottom of Bitcoin’s (BTC) bear market in 2018 reveals a scenario that would liquidate both bulls and bears before the crypto king’s next leg begins.
Pseudonymous analyst Bluntz tells his 223,400 Twitter followers that Bitcoin could form a bull trap by briefly rising above its yearly high of around $31,500 before correcting all the way to $29,500.
According to the trader, the move to $29,500 is likely to be a bear trap as he expects Bitcoin to begin the next phase of its uptrend after the pullback.
“The maximum pain move in this scenario of screwing as many people as possible on BTC is taking the $31,500 highs and then the $29,500 lows before the actual sending.”
At the time of writing, Bitcoin is trading at $30,834.
The crypto strategist also keeps an eye on Ethereum (ETH), which he says is sending bullish signals against Bitcoin (ETH/BTC). According to Bluntz, the bullish setup of ETH/BTC suggests that the Ethereum versus USD pair is likely to see rallies with small retracements.
“An extremely bullish four-hour chart is forming on ETH/BTC after swiping both the highs and lows.
I would have thought the USD pair would pull back deeper than it is, but with this setup on the ETH/BTC pair, we may just start marking from here with very minimal pullbacks.
At the time of writing, Ethereum is worth $1,941.
The analyst also looks at Ethereum rival Solana (SOL). Bluntz says he expects Solana to correct to the $18 level in the coming days before reversing and rising to $24.
“Stalking something like that on SOL to add to longs this week.”
At the time of writing, SOL is trading at $19.23.
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