A trader who nailed Bitcoin’s (BTC) 2018 bear market bottom is unveiling a scenario that would liquidate both bulls and bears before the crypto king’s next leg up begins.
Pseudonymous analyst Bluntz tells his 223,400 Twitter followers that Bitcoin could set a bull trap by briefly surging above its yearly high of around $31,500 only to correct all the way down to $29,500.
According to the trader, the move to $29,500 will likely be a bear trap as he expects Bitcoin to start the next phase of its uptrend following the pullback.
“The max pain move in this scenario that screws over as many people as possible on BTC would be taking the $31,500 highs and then taking the $29,500 lows before the real sending happens.”
At time of writing, Bitcoin is trading for $30,834.
The crypto strategist is also keeping an eye on Ethereum (ETH), which he says is flashing bullish signals against Bitcoin (ETH/BTC). According to Bluntz, the bullish setup of ETH/BTC suggests that the Ethereum versus USD pair is likely to witness rallies with minor retracements.
“An extremely bullish four-hour chart forming on ETH/BTC after sweeping both the highs and lows.
I had thought the USD pair might pull back deeper than it has but with this setup on the ETH/BTC pair maybe we do just start marking up from here with very minimal pullbacks.”
At time of writing, Ethereum is worth $1,941.
The analyst is also watching Ethereum rival Solana (SOL). Bluntz says he expects Solana to correct down to the $18 level in the coming days before it reverses and rallies toward $24.
“Stalking something like this on SOL to add to longs this week.”
At time of writing, SOL is trading for $19.23.
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Source: https://dailyhodl.com/2023/07/05/top-trader-outlines-max-pain-scenario-for-bitcoin-btc-updates-outlook-on-ethereum-eth-and-solana-sol/