Bitcoin (BTC) has had a tumultuous year so far, experiencing massive price fluctuations from an all-time high of $64,863 to a low of $28,893. The cryptocurrency has been unable to break out of its current range-bound trading, leading some analysts to predict a continuation of the downtrend.
One such analyst is the pseudonymous trader Bluntz, who has gained a large following by calling market bottoms and using the Elliott Wave theory to analyze price movements. Bluntz believes that BTC is unlikely to break above $30,000 anytime soon and is in the midst of an ABC corrective move that could send Bitcoin all the way down to the $25,000 price area.
Bluntz’s analysis is based on the Elliott Wave theory, which attempts to predict future price action by following crowd psychology that manifests in waves. According to the theory, a bullish asset tends to go on a five-wave uptrend, followed by an ABC corrective move. Bluntz believes that BTC has completed its five-wave uptrend on the daily chart and is now in the midst of an ABC corrective move.
Looking at Bluntz’s chart, he appears to predict that Bitcoin could resume its uptrend after hitting $25,000 and rally toward $32,000 by the second half of 2023. However, this projection is contingent on Bitcoin finding support at the $25,000 price level.
As for Ethereum (ETH), Bluntz believes that the leading smart contract platform will likely drop in value faster than BTC. Looking at the ETH/BTC chart, Bluntz says that it could drop to as low as 0.06 BTC ($1,757) before regaining bullish momentum and rallying to 0.073 BTC ($2,138).
Bluntz’s analysis raises several important questions for investors who are considering investing in Bitcoin and other cryptocurrencies. One of the biggest questions is whether Bitcoin is truly in a corrective phase or if it is in the midst of a prolonged downtrend.
Another important question is whether Ethereum will continue to underperform Bitcoin, as Bluntz suggests. Ethereum has been the second-largest cryptocurrency by market capitalization for some time and has shown tremendous growth potential as a smart contract platform. However, if Ethereum continues to lose value faster than Bitcoin, it could be a cause for concern for investors who have allocated a significant portion of their portfolio to the cryptocurrency.
It is important to note that Bluntz’s analysis is based on technical analysis and the Elliott Wave theory, which is just one of many approaches to analyzing market trends. While the theory has gained popularity among some traders and analysts, it is not without its detractors, who argue that it is too subjective and prone to interpretation.
Investors should also keep in mind that the cryptocurrency market is highly volatile and subject to sudden price swings. While Bluntz’s analysis may be useful for understanding current market trends, it is important to take a long-term perspective and not make investment decisions based solely on short-term price movements.
Overall, Bluntz’s analysis provides valuable insights into the current state of the cryptocurrency market and the potential direction of Bitcoin and Ethereum prices. However, investors should conduct their own research and analysis before making any investment decisions and should always be prepared for unexpected price movements in the highly volatile cryptocurrency market.
