Bitcoin Facing Bearish Signals as Market Awaits Pre-Bull Correction

  • Renowned crypto analyst who previously predicted market dips shares the latest analysis on Bitcoin and other altcoins.
  • Analyst suggests market rallies could spark from an imminent correction in the crypto space.
  • Call options are being sold heavily in the Bitcoin market, with a noticeable shift towards put options among investors.

A meticulous analysis of current trends in Bitcoin and altcoins, focusing on market corrections and investor sentiment.

Analyst Predicts Imminent Dip Before Major Crypto Rally

Crypto analyst Bluntz, known for accurate predictions, highlights that the total market cap excluding Bitcoin, Ethereum, and stablecoins (TOTAL3) is poised for a drop before a significant uptrend. Tracking the TOTAL3 chart, he notes the presence of a clear five-wave rise, suggesting an impending ABC corrective wave.

Applying Elliott Wave Theory to Crypto Markets

According to Bluntz, TOTAL3 might decline to $530 billion before rallying to $620 billion. As per Elliott Wave theory, an asset usually rallies after completing an ABC lower move. This insight is based on the four-hour chart analysis indicating a structural correction.

Investor Sentiment Signals a Bearish Trend in Bitcoin

On the Bitcoin front, a noticeable trend is the substantial movement in options trading. Greeks.Live reports that the day’s total options volume includes 3,643 BTC call options and 2,084 BTC put options, indicating a cautious outlook among major players. The implied volatility for Bitcoin has dipped below 50%, signifying a prudent stance on market direction.

Short-Term Holders Facing Losses Signal Potential Market Pessimism

On-chain data reveals a bearish bias, with over 80% of short-term Bitcoin holders currently at a loss. This mirrors past market conditions from 2018, 2019, and mid-2021, suggesting heightened panic among investors and potential for further market decline.

Conclusion

In conclusion, while there are emerging signs of a potential market rally, the overall sentiment remains cautious with expectations of a near-term dip before significant gains. Investors should watch for key support levels and on-chain data for guidance on potential market movements.

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