A trader who nailed Bitcoin’s (BTC) 2018 bear market bottom believes that the crypto king may be setting up for a pullback of more than 20%.

Pseudonymous analyst Bluntz tells his 225,200 followers on the social media platform X that he’s staying on the sidelines for now after Bitcoin failed to crack its psychological resistance at $30,000.

According to the analyst, Bitcoin’s recent rally appears to be part of an ABC corrective move that could see BTC plunging all the way down to $22,376.

“Nice move up on BTC overnight, wicked straight into my target price. I haven’t had a trade go that smoothly in a long time in this choppy disgusting market but I’m now sidelined again. I’m not sure we just rocket to new highs from here, this is going to be quite a strong resistance, in my opinion.

I’m still acutely aware that this move up can be a B wave, not enough conviction to short but happy to be sidelined again for a little bit and see how this unfolds.”

Source: Bluntz/X

Bluntz utilizes the Elliott Wave theory in his technical analysis, an approach that attempts to predict future price action by following crowd psychology that tends to manifest in waves. According to the theory, a bullish asset may witness an ABC corrective wave after a move up to consolidate its gains prior to the next leg up.

On Monday, Bitcoin surged briefly above $30,000 on erroneous reports that the U.S. Securities and Exchange Commission (SEC) has greenlighted BlackRock’s bid for a spot-based BTC exchange-traded fund (ETF).

Bitcoin has retraced since and is trading at $28,478 at time of writing.

Generated Image: Midjourney

The post Bitcoin on the Verge of Deep Corrective Move Following BTC Rally to $30,000, According to Top Trader appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ October 17, 2023 7:22 am