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Bitcoin and Ethereum Set for Correction Phase Before Bull Run Fueled by Grayscale BTC ETF, According to Analyst

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  • Influential crypto analyst Bluntz warns that despite recent upticks, Bitcoin (BTC) and Ethereum (ETH) may still experience another downturn based on Elliott Wave theory.
  • For his thesis to be invalidated, Ethereum would need to break $1,804 and Bitcoin $28,770, as these thresholds mark the boundaries beyond which the anticipated Elliott Waves would be disrupted.

Understanding Elliott Wave Patterns: A Cautionary Perspective

In a crypto market where optimism seems to be resurging, renowned analyst Bluntz offers a note of caution. Through incisive technical analysis that employs Elliott Wave theory, Bluntz informed his 224,500 followers on social media that the recent bullish activity around Bitcoin (BTC) and Ethereum (ETH) could very well be a false dawn.

The Anatomy of Elliott Waves in Crypto Forecasting

Elliott Wave theory is a well-regarded tool in technical analysis that employs crowd psychology to map out potential future market trends. It constructs ‘waves’—a series of price patterns and trends that operate in repetitive cycles. In Bluntz’s interpretation, both Bitcoin and Ethereum are nearing the completion of their respective ‘fifth waves,’ which, within Elliott Wave parlance, typically signifies a potential downturn.

According to his charts, Ethereum may be heading toward a bearish zone with a target price of $1,450. This five-wave pattern on his charts is encapsulated within a broader three-wave pattern (labeled A, B, C), which is also in a descending trajectory. For Bitcoin, while specific target numbers were not given, the implication is clear: the asset might also be on the brink of a ‘fifth wave,’ spelling potential trouble for those anticipating a straightforward bull run.

Critical to the credibility of his thesis are specific price points that serve as counter-indicators. If Ethereum’s price breaks above $1,804 and Bitcoin crosses the $28,770 mark, these would act as thresholds that disrupt the expected wave patterns. Crossing these lines would thus invalidate his bearish outlook, rendering a continuation of the bullish trend more likely. At the time of writing, Bitcoin and Ethereum are trading at $27,385 and $1,719, respectively, positioning them perilously close to these critical junctures.

Although recent market activities have reflected a more than 5% increase in the value of both Bitcoin and Ethereum, Bluntz suggests that traders and investors should tread carefully. It’s not uncommon in the realm of financial markets for what appears to be the initiation of a bullish phase to be, in reality, the precursor to another downturn. With the substantial stakes involved in cryptocurrency investments, market participants would be wise to consider all analytical perspectives, including those that offer a less-than-rosy outlook.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628