Top Analyst Warns Equities Could Drive Crypto Down
A Bitcoin (BTC) bear market bottom caller from 2018 warns that a poor stock market might spark another sell-off event in cryptocurrency.
Pseudonymous analyst Bluntz reports to his 224,600 Twitter followers that the S&P 500 is showing signs of weakness around the 0.618 Fibonacci level, after the printing of a three-wave uptrend.
Technical analysis method that seeks to anticipate future price movement by tracking the psychology of market players, which tends to emerge in waves, is what Bluntz bases his forecasts on. The idea states that a bearish asset will have an ABC rebound before continuing its slump.
The expert cautions against being too optimistic about the stock market or cryptocurrency right now. “Equities have had a nice return from the lows, but they seem to be stopping at the 0.618 [Fibonacci level], and there has only been a bounce in three waves so far, so things are definitely looking a bit shaky right now.
It would likely be enough to send crypto down if they started to go south. Don’t take any chances; now is not the time to be bold. There is no neutral ground, and that’s a stance in and of itself.
The S&P 500 is now trading at 4,496 points, which is lower than the 0.618 Fibonacci threshold of 4,520 points.
According to Bluntz’s most recent analysis, Bitcoin is likely ready for additional corrective swings before carving out a local bottom, which is consistent with his recent prediction. The expert has previously predicted that Bitcoin’s price would drop below the $23,000 zone before hitting bottom and beginning a new upswing.