A crypto strategist, who has gained recognition as a “Master Trader” on Bybit, the digital asset exchange, predicts that Bitcoin (BTC) is entering a new bull market. Bluntz, a pseudonymous analyst with a following of 288,200 on X, a social media platform, points out that Bitcoin has been experiencing shallower price drops in the shorter time frames since hitting its low point in August at around $49,000.
Bluntz suggests that Bitcoin is forming a series of 1-2 Elliott Wave structures, a technical analysis method that aims to forecast future price movements based on crowd psychology, which tends to manifest in waves. According to this theory, a bullish asset typically undergoes a surge consisting of five waves, with wave two being a corrective phase and wave three representing the strongest upward movement.
Bluntz notes that the wave twos are becoming increasingly shallower, indicating that Bitcoin is gearing up for a significant breakout in wave three. The first wave two, which occurred at $52,000, hit the 0.768 Fibonacci level, while the second wave two at $59,600 barely reached the 0.50 Fibonacci level. The third wave two, which took place at $65,300, only reached the 0.382 Fibonacci level. Bluntz sees this as a sign of a strong market.
As long as Bitcoin remains above $65,300, Bluntz predicts that BTC will consolidate below $68,000 for a period before triggering a powerful rally in wave three. At the time of writing, Bitcoin is currently trading at $66,979.
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