The pseudonymous analyst Bluntz, who accurately predicted the bottom of the 2018 bear market for Bitcoin (BTC), is warning that the cryptocurrency may experience a similar price action to what occurred in 2020, when it dropped from $10,000 to $4,000 in a matter of weeks. Bluntz, who has a following of 225,200 on the social media platform X, believes that Bitcoin has already hit a cycle bottom at around $15,000. However, he also acknowledges the possibility of a further drop to $19,000 before a full-blown bull market begins next year.
Bluntz’s prediction comes at a time when Bitcoin is trading at $27,612, down over 1% in the last 24 hours. He emphasizes the importance of keeping an eye on the TOTAL chart, which tracks the market capitalization of all crypto assets. According to Bluntz, the TOTAL chart appears to be signaling another leg down after completing an ABC bounce and printing a bearish lower-high setup. As of now, the TOTAL market cap stands at $1.05 trillion.
Bluntz utilizes the Elliott Wave theory in his analysis, which is a technical analysis approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. The theory suggests that a bearish asset may go through an ABC move to the upside before continuing its downtrend.
Turning to the smart contract platform Avalanche (AVAX), Bluntz believes that the altcoin’s bounce is over after failing to break through resistance at around $11. His opinion aligns with the recent hack of the Avalanche-based social finance (SocialFi) app Stars Arena, which resulted in the loss of $2.9 million worth of AVAX. At present, AVAX is valued at $9.56, down over 4% in the past day.
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It is important to note that the opinions expressed by Bluntz and featured in this article are not investment advice. Investors should conduct their own due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, and it is not an investment advisor. Users should also be aware that their transfers and trades are at their own risk, and any losses incurred are their responsibility. The Daily Hodl does participate in affiliate marketing.
In conclusion, Bluntz’s analysis suggests that Bitcoin may experience a price drop similar to what occurred in 2020 before entering a full-blown bull market. He also highlights the potential for further downside in the TOTAL market cap and suggests that the bounce in Avalanche may be over. As the cryptocurrency market continues to evolve and fluctuate, it is crucial for investors to stay informed and make informed decisions based on their own research and risk tolerance.
