Technical skilled Tony Severino has revealed why he’s not bullish on BTC and different crypto belongings amid the current Bitcoin value drawdown. The analyst had additionally earlier raised the potential for the flagship crypto dropping to as little as $22,000.
Professional Reveals Why He Is No Longer Bullish Amid Bitcoin Value Drawdown
In an X submit, Severino alluded to market cycles and the Elliott Wave Idea to clarify why he’s not bullish on BTC and different crypto belongings. In his accompanying chart, he highlighted the truth that the Bitcoin value recorded a 100% on each Wave 1 and Wave 5 in this bull run, which dates again to round November 2022.
The skilled defined that this means the highest is in, as Wave 1 and Wave 5 usually document comparable value positive aspects. Nonetheless, the analyst famous that there’s nonetheless the potential for the Bitcoin value going greater because it might document an analogous achieve to the one recorded in Wave 3 after the Bitcoin ETFs launched final 12 months.
Based mostly on Elliot Wave Idea, at the least two of the Waves should have comparable value positive aspects, which makes it a chance that Wave 5 might replicate Wave 3’s efficiency. Nonetheless, Severino appears to be like to be betting in opposition to that taking place as he additionally highlighted the euphoria round Donald Trump’s inauguration as one more reason why the highest is probably going in and why he’s not bullish on the Bitcoin value. He famous that the euphoria part at all times comes simply earlier than the cycle high.
The technical skilled admitted that the euphoria round Trump’s inauguration wasn’t as a lot as he anticipated. Nonetheless, he proceeded to spotlight a sample with the cyclical crests, which is one more reason he’s not bullish on BTC and different crypto belongings. Severino famous that Wave 1 and Wave 3 topped proper on the cyclical crest. As such, he remarked that it is sensible that Wave 5 can even high on the cyclical crest.
Different Indicators Which Recommend BTC Has Topped
Tony Severino additionally alluded to different chart patterns and indicators, suggesting that the Bitcoin value has topped and explaining why he’s not bullish on BTC. He highlighted a curve trendline on one other chart, which confirmed that the flagship crypto has reached the purpose of most monetary alternative on this market cycle.
The technical skilled went on to spotlight indicators just like the Parabolic SAR (Cease and Reverse), which means that the Bitcoin value’s parabolic part on this cycle has stopped and {that a} reversal could also be imminent. One other indicator he alluded to is the Common Directional Index (ADX), which Severino remarked exhibits that BTC’s uptrend energy is weakening.
He affirmed that the upward momentum for the Bitcoin value is weakening, and it doesn’t appear like it can get again up anytime quickly. The skilled highlighted the Logarithmic MACD as one other indicator that proves that momentum for the flagship crypto on this market cycle is declining.
Featured picture from Adobe Inventory, chart from Tradingview.com
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