The cryptocurrency market commenced the week with a decline, influenced by Bitcoin‘s (BTC) pullback, which also led to double-digit drops in many altcoins. Renowned for his accurate predictions, crypto analyst Bluntz issued a warning, indicating a potential downturn for both Bitcoin and Ethereum (ETH).
Bluntz, known for his precise forecasts, alerted investors about Bitcoin and Ethereum through his personal Twitter account. Sharing two price charts, he underscored an extraordinary month and noted that BTC and ETH now appear worrisome.
Anticipating a cooldown in both cryptocurrencies, Bluntz’s shared charts suggest a potential pullback to the $39,000 level for Bitcoin and the $2,000 level for Ethereum.
The analyst’s pullback expectation is based on the Elliott Wave theory, which posits that an asset’s price trend typically unfolds in a five-wave pattern during an uptrend and in a three-wave pattern during a downtrend. According to Bluntz, BTC and ETH are currently in the third phase of a downtrend.
Current data shows Bitcoin trading at $43,123, down 1.05% over the last 24 hours, while Ethereum has seen a 0.59% decrease, trading at $2,273. The expected pullback would represent roughly a 10% drop for Bitcoin and a 12% drop for Ethereum from their current prices.
Such a decline in the two largest market assets could trigger sharp falls in the altcoin market, with potential retracements of 20-30% or even higher. Therefore, it is crucial for investors to heed Bluntz’s warning and prepare for a possible market downturn.