A popular cryptocurrency analyst known in the space for accurately predicting the cryptocurrency market bottom during the 2018 bear market, has recently outlined Bitcoin’s “max pain” scenario, but noted that despite it there could still be a “real run up.”
In a post shared on the microblogging platform X (formerly know as Twitter) with his over 250,000 followers, pseudonymous cryptocurrency analyst Bluntz revealed he believes Bitcoin’s “max pain” scenario is to lose its recent high and while doing so see investors buy the dip expecting it to keep on rising as they “think its some kind of triangle breakout.”
Per his words, the scenario would then see BTC’s price “fade back into the lower end of the range again” before the cryptocurrency starts surging again. His price targets suggest BTC could fall to around the $64,000 mark before a surge takes it to around $82,000.
Bluntz utilizes the Elliott Wave Theory, a technical analysis framework that suggests an asset’s price movement unfolds in a specific, five-wave pattern. Elliott Wave Theory, a popular form of technical analysis, postulates that market trends unfold in repetitive cycles driven by investor psychology. These cycles typically consist of a five-wave progression in the direction of the prevailing trend, followed by a three-wave corrective phase.
Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses.
According to Bluntz, Bitcoin appears to be forming an “ABC” corrective pattern on its daily chart, which typically signifies consolidation after a strong uptrend.
Bitcoin is at the time of writing trading at around $70,600 after moving up from a $66,000 low seen after hotter-than-expected inflation data in the United States led to a wider market correction.
As recently reported Peter Brandt, a highly experienced and respected figure in the world of trading and market analysis known in the cryptocurrency space for accurately predicting Bitcoin’s 84% decline in 2018, has revealed he sees BTC surging toward the $80,000 mark in the near future.
Not everyone is as bullish, however, as Peter Schiff, CEO of Euro Pacific Capital and a well-known Bitcoin bear, has recently told investors that this is “their last chance” to sell their Bitcoin holdings and buy gold and silver instead, with the alternative being to “have fun staying poor.”
It’s worth noting Bluntz is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
Featured image via Unsplash.
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