The trader who accurately called the bottom of the 2018 Bitcoin (BTC) bear market is warning that the flagship cryptocurrency could repeat the price action of 2020, when it fell from $10,000 to $4,000 in a matter of weeks.
Pseudonymous analyst Bluntz tells his 225,200 followers on the social media platform X that he believes Bitcoin has already pushed a cycle bottom around $15,000.
However, the top trader notes that it is within the realm of possibility that BTC falls all the way to $19,000 before a full-blown bull market is launched next year.
“Personally, I think BTC has probably bottomed at $15,000, but also that we are in the 2019-2020 part of the cycle where we can still easily get to $19,000-$20,000 and make a higher low and into can continue to rise until 2024.”
At the time of writing, Bitcoin is trading at $27,612, down more than 1% in the past 24 hours.
Bluntz says he also keeps a close eye on the TOTAL chart, which tracks the market capitalization of all crypto assets. According to the trader, TOTAL seems poised to witness another leg down after completing an ABC bounce and printing a bearish lower-high setup.
“TOTAL It looks like things are about to roll over in my opinion. I think this most recent rally is exhausted.”
Bluntz uses Elliott Wave theory in his analysis. The Elliot Wave Theory is a technical analysis approach that attempts to predict future price action by following the psychology of the crowd which often manifests itself in waves. According to the theory, a bearish asset can make an ABC move to the upside before continuing its downtrend.
At the time of writing, TOTAL is trading at $1.05 trillion.
As for smart contract platform Avalanche (AVAX), Bluntz thinks the altcoin’s rebound is over after failing to clear resistance around $11.
“AVAX has rejected a hardline at a key level due to the Stars Arena hack. It was a good move from the bottom, but not worth keeping in my opinion.”
Over the weekend, Avalanche-based social finance app Stars Arena (SocialFi) was hacked to the tune of $2.9 million worth of AVAX.
At the time of writing, AVAX is worth $9.56, down more than 4% in the past day.
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Generated image: Midjourney
