November 2, 2023
A widely followed crypto trader is warning that altcoins face a bearish outlook in the event that Bitcoin (BTC) reaches new local highs.
Pseudonymous analyst Bluntz explains that altcoins have performed well because Bitcoin has traded in a range over the last eight days. However, Bluntz cautions that once Bitcoin breaks out, it will likely draw attention away from altcoins, causing them to lose value.
Bluntz, who applies the Elliott Wave theory in his technical analysis, believes that Bitcoin is currently on the fourth wave before it breaks out. According to this theory, the price of an asset moves in a five-wave pattern. Based on Bluntz's charts, Bitcoin is expected to complete the bullish trend that started last month and potentially reach as high as $42,000 and beyond in the fifth wave.
Bluntz also points out that Bitcoin is likely to rally in a similar manner to what it did in April 2019 and October 2020. In both instances, Bitcoin broke out of a weekly range and experienced significant price increases. In April 2019, BTC surged by around 160% until June of that year, and in October 2020, it soared by around 400% to reach its then all-time high of around $65,000 in April 2021.
In conclusion, altcoins may face a bearish outlook if Bitcoin reaches new local highs. Traders should be prepared for Bitcoin to potentially draw attention away from altcoins and focus on its own bullish trend. Based on historical patterns and the application of the Elliott Wave theory, Bitcoin has the potential to reach new highs in the coming months. However, investors should always do their due diligence and consider the risks associated with high-risk investments in Bitcoin and other cryptocurrencies.
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