A widely followed crypto strategist says that Bitcoin (BTC) and Ethereum (ETH) have yet to bottom out.
The pseudonymous analyst known as Bluntz says his 223,000 Twitter followers that Bitcoin is likely to drop to the $24,000 level in June.
“Although the low time frames look good, the higher time frames still look quite heavy. I can’t help but feel that this ends up resolving as a longer-term bear flag of sorts in BTC and ETH. I will be watching in the $28,200-$28,300 region, that is where I would be watching for any kind of failure.”
Looking at his chart, the analyst indicates that Bitcoin price action is forming a double three Elliott wave pattern, with the waves labeled W, X, and Y in technical analysis. The trader labels waves W and X and draws corrective wave Y that would sink BTC below the $24,800 level.
Bitcoin is trading at $26,326 at the time of writing, down 3.2% over the past 24 hours.
According to the analyst, Ethereum appears be forming a bear flag pattern, which forms when two periods of decline are separated by a period of retracement consolidation and is likely to continue in a downtrend.
“Bear flag looks extremely likely now (in my opinion), I thought we would go higher, but with this selloff today I think it has come sooner and things can get ugly fast.”
The merchant had previously warned of a “scam” bounce for ETH based on the social media hype you reviewed.
“I just spent about 10 minutes browsing my feed and I can tell it’s a very low quality timeline right now. It’s basically 90% bullshit posts with the occasional damning post sprinkled in the middle. I can’t help but feel like a scam bomb is brewing.”
Ethereum is trading at 1,798, down 2.9% over the last 24 hours.
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