A widely followed crypto analyst is predicting a parabolic rally for Bitcoin (BTC) as its structure is displaying bullish signs.
In a new strategy session, pseudonymous crypto trader Bluntz says that the slight pullback the king crypto experienced overnight is likely going to serve as its low as its price continues to surge.
“I would not be surprised to think that maybe [the dip] was the low on Bitcoin, and it was a shallow one [so] we potentially [can] move higher.”
The crypto strategist goes on to say that the top crypto asset by market cap’s structure indicates its next move will be a huge leg up.
“If you were to be looking to long Bitcoin, I think you’d probably want to have a decent stop, maybe down here at like $33,500, but I think this next leg up – I think Bitcoin is still very, very, very much impulsive.”
Interpreting the chart using the Elliott Wave Theory, a five-wave form of financial analysis that forecasts market trends by examining extremes in investor psychology and price, Bluntz predicts a parabolic rise for BTC that could see it land somewhere in the $50,000 area.
“I think all in all, the structure for Bitcoin is still very, very much bullish and this can potentially extend even much higher again…
[It] will probably end up in the [$50,000s]… There’s potential that one of these waves is probably going to extend far higher than we can imagine because that seems to happen [to] Bitcoin as well, at some point it just goes parabolic and I think that will probably happen in this leg we’re probably in right now.
I’m still very much bullish on Bitcoin. I think this overnight dip is probably a gift. I don’t think there are any signs of tops in my opinion. I think it’s probably bottomed here.”
Bitcoin is trading for $34,487 at time of writing, a fractional decrease during the last 24 hours.