Expert Predicts Bitcoin and Ethereum’s Downfall Despite Positive Market Sentiment

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Recently BTC broke its downward trend to surge above the $27,000 mark. It was an impressive comeback after two weeks which can be attributed to a legal victory for Grayscale in the United States. An analyst who correctly forecasted the bottom of Bitcoin’s 2018 bear market says the cryptocurrency’s downturn is underway. Could the recent price surge in Bitcoin and Ethereum be a temporary rebound, and is there a possibility of further downside according to analyst Bluntz? 

Is it the Start of a Bull Trap for BTC & ETH? 

Both the coins have climbed by over 5% each, but according to a Pseudonymous analyst Bluntz Bitcoin and Ethereum, the two largest crypto assets by market cap still have more downside potential. A sign of a bear taking control of the bulls. 

The analyst foresees a clear bottom for BTC and ETH as per the current shift which shows a downward signal. Over this, a lingering conviction persisted that an additional downward movement might be necessary. Expectedly from here onwards, the completion of a final downward wave, specifically the fifth wave of C, appeared to be a prerequisite in both BTC and ETH before they are declared as bottomout. 

“He still thinks one more leg down needs to happen to complete a (5) of C for BTC and ETH before he will be happy to call bottoms.”

Bearish Projections for Bitcoin and Ethereum

Employing the Elliott Wave theory in his technical analysis, Bluntz utilized a chart to present his projection for the future trajectory of Ethereum. The chart seems to indicate Bluntz’s implication that ETH is very close to finalizing a five-wave pattern (notated as 1, 2, 3, 4, 5) with a price target of $1,450. His chart illustrates the presence of a five-wave pattern, which is contained within a larger three-wave pattern (designated as A, B, C). This overarching pattern is characterized by a downward trend as well.

Talking about invalidation of his bearish forecast for both Bitcoin and Ethereum, Bluntz said, that if there were a breach of $1,804 for ETH or $28,770 for BTC, the arguments would lose validity. This is due to the principle that wave 4 is not permitted to extend into the territory of wave 1.