An analyst known for his timely crypto calls warns that Bitcoin (BTC) is suddenly sending a bearish signal.
Pseudonymous analyst Bluntz tells his 337,700 followers on
Bearish flag patterns are used in technical analysis to predict abrupt downward moves. They are formed when the price consolidates after a strong downtrend but fails to break a key support level.
“Not exactly a fan of this channel on BTC, could easily turn into a bear flag if things falter here.”
Looking at his chart, the analyst suggests that BTC needs to convincingly hold above the $70,000 range to negate the bearish signal.
He too predicts that Bitcoin will eventually return to the Fibonacci retracement level at $51,299.
Fibonacci retracement levels are used in technical analysis to determine the support and resistance levels of an asset.
“I think at this stage I’m probably leaning towards Bitcoin, which will eventually collapse here and drop to a new low. I think this will most likely go to this key 0.618 level, and then most likely also produce some high timeframe bull divs.”
Bitcoin is trading at $71,575 at the time of writing, up more than 4% on the day.
Next up, Bluntz warns that Ethereum (ETH) rival Solana (SOL) is not yet done correcting.
“I expect another low for SOL and then another bull posting.”
SOL is trading at $85 at the time of writing, up almost 7% on the day.
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Generated image: Midjourney