Pseudonymous crypto analyst and trader Blunzt, who accurately predicted the 2018 bear market bottom for Bitcoin (BTC), has warned his followers on X that the flagship cryptocurrency may replicate the price action from 2020 when it went from $10,000 a pop to $4,000 in a matter of weeks.
Crypto Analyst Warns Bitcoin Could Bottom At $20,000 Range Before 2024 Bull Run
The top trader believes BTC to have probably already bottomed out at $15,000 but noted a possibility that the Bitcoin market could perform similarly to the 2019-2020 cycle by going all the way down from its current price in the $28,000 range to $19,000-$20,000, putting in a new higher low and then launch a full-on bull market throughout 2024.
Bluntz is also keeping a close watch on the crypto Total chart, which tracks the market capitalization of all crypto assets. According to his analysis, the total chart indicates that the most recent rally has “exhausted” and the market is primed to witness another downtrend following an ABC bounce-back pattern earlier this month and a bearish lower-high setup.
In financial market terms, an ABC pattern can be defined as a stop run of the first pullback of any given asset after an aggressive move to the upside, signifying more potential in the direction of a possible larger move.
The analyst uses the Elliot Wave theory to make his analysis by attempting to predict future BTC price action by following crowd psychology that manifests in waves. The theory suggests that a bearish asset may go through an ABC move to the upside before continuing on its downward trend.
The Total chart shows that the overall cryptocurrency market is currently trading at $1 trillion.
Dollar “Debt Death Spiral” Could Fuel BTC Resurgence
Earlier this week, an analyst at investment banking firm Jefferies warned that the U.S. Federal Reserve’s “unconventional monetary policy” of hiking borrowing interest rates to combat rising inflation could be fatal to the dollar while fueling a surge for BTC that may even rival the gold market.
Christopher Wood, the global head of equity strategy at Jefferies, wrote in a note to investors that G7 central banks will be forced to take aggressive measures to reduce liquidity in the market due to an explosion in money supply during the COVID-19 lockdowns, which has resulted in an unusually large gap in interest rates hikes. He says the central bank policy will create a “death debt spiral” that will force investors to look for alternate stores of value like Bitcoin and gold that would act as “critical hedges” against inflation.
Wood also highlighted Bitcoin’s growing popularity as an investible asset and store of value among institutional investors. Wall Street giants including BlackRock, Fidelity, Invesco, and VanEck, have recently filed applications to list the first-ever BTC-focused exchange-traded funds (ETFs) for the U.S. spot market.
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At the time of writing, Bitcoin (BTC) is trading at $27,101 – down 2% from the previous day’s price.