According to Bluntz, a popular pseudonymous analyst and trader, Bitcoin is set to rise after overcoming key resistance levels. Bluntz has a significant Twitter following of over 222,900, and he has suggested that swing failure patterns (SFPS) are forming on the daily chart of BTC and other top crypto assets in a downtrend. Typically, a swing failure pattern occurring during a downtrend signals a reversal to the upside and a reversal to the downside if the pattern occurs during a bullish run.
Bluntz said, “Solid swing failure patterns forming here on the daily chart for BTC and most majors. I don’t think now’s the time to be short, that was weeks ago. I think we bounce here but I’ll be keeping a very close eye on the next resistances which for me are $28,300 and $29,500.”
Bitcoin is currently trading at $27,410, up by about 6% from the May low of $25,811 reached last weekend.
Bluntz also shared insights on Litecoin (LTC), which is approaching its third halving event. The 12th-largest crypto asset by market cap has more upside potential based on historical precedent, according to the pseudonymous trader. Bluntz said, “Think I agree on this, nice little bit of data someone shared with me earlier regarding [Litecoin] halving. Seems like there could be a solid month – 40 days left of upside based on the last two halvings. It is a small dataset but valuable nonetheless in my opinion.”
Litecoin is currently trading at $93.09, up by a little over 15% in the last seven days.
These insights from Bluntz could indicate that Bitcoin and Litecoin are about to rise significantly. However, it is essential to build a broader context to understand why these two crypto assets might be a good investment to make.
Bitcoin is currently consolidating around $30,000 after experiencing a steep decline from its all-time high of nearly $65,000 in 2021. Due to this price correction, some investors are looking to accumulate Bitcoin as it represents an excellent opportunity to buy at a lower cost.
Bitcoin’s declining price has been attributed to a range of factors, including China’s crackdown on Bitcoin mining and concerns about environmental sustainability. The Chinese government has prohibited Bitcoin mining in some regions due to the high energy consumption required to mine Bitcoin. As a result, several mining companies have relocated their operations to other countries, such as the United States and Canada.
Furthermore, the Biden administration’s proposed tax changes, which would affect digital asset transfers, have also contributed to the Bitcoin price decline. Various other factors, such as legal battles over the distribution of digital assets and increased scrutiny from regulators, have fueled Bitcoin’s volatility.
Despite these concerns, many cryptocurrency investors still believe in the potential of Bitcoin and other digital currencies. Bitcoin has generally been viewed as a hedge against inflation and an alternative to traditional fiat currencies. As governments worldwide print more money to contain the economic fallout from the COVID-19 pandemic, Bitcoin could represent an excellent way to store value.
On the other hand, Litecoin, which was created in 2011, has several similarities to Bitcoin as it employs the same technology but with some variations. Its value depends on supply and demand, and it can be acquired through online exchanges, mining, and buying it from others.
Litecoin is designed to be faster and cheaper than Bitcoin, with transactions completed in two and a half minutes compared to Bitcoin’s 10 minutes. The idea behind Litecoin is to reduce the time it takes to confirm a transaction and make it easier to use for day-to-day transactions. With the rise of decentralized finance (DeFi), LiteCoin could have more use cases, leading to more demand for it.
Moreover, Litecoin has a maximum supply of 84 million, which is four times as many coins as Bitcoin. This factor makes Litecoin’s price more accessible for retail investors, and it also ensures that Litecoin has a lower scarcity than Bitcoin.
In conclusion, the pseudonymous analyst Bluntz has expressed bullish sentiments on both Bitcoin and Litecoin. His insights are based on swing failure patterns (SFPS) that are forming on the daily charts of these crypto assets in a downtrend. However, it is important to keep in mind that cryptocurrencies are highly volatile, and investors should always do their due diligence before making any high-risk investments.
