A leading crypto strategist says a significant correction may be coming for both Bitcoin (BTC) and Ethereum (ETH).
Pseudonymous trader Bluntz tells his 233,200 followers on social media platform X that BTC and ETH appear to be in the middle of an ABC correction pattern.
Bluntz is a popular practitioner of Elliott Wave theory, a technical analysis method that attempts to predict future price action by following the psychology of the crowd that often manifests itself in waves. According to the theory, a bullish asset tends to witness an ABC correction wave before triggering the next rise.
The analyst says that the price action of BTC and ETH over the past week indicates that both crypto assets may be positioning themselves for the final phase of the ABC pattern.
“I’ve had a phenomenal month, but BTC And ETH I find this a bit worrying. Time to relax and see how the next few weeks develop.
I’ve really been cutting back on my leveraged positions over the last few days. I think a lot of these slow developments over the past week on BTC and ETH were probably B waves.”
The analyst shares a chart showing BTC retreating to a low of $39,000.
At the time of writing, Bitcoin is trading at $43,523.
As for Ethereum, the analyst predicts that it could fall to $2,000.
At the time of writing, ETH is worth $2,272.
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Featured image: Shutterstock/DETHAL/Sol Invictus