Analyst Raises Concerns About Bitcoin, Suggests Crypto Might Experience a ‘Devastating’ Price Drop

A prominently followed cryptocurrency trader has issued a cautionary message to Bitcoin (BTC) enthusiasts due to the flagship cryptocurrency’s continued struggle below a critical resistance threshold.

A trader who goes by the pseudonym Bluntz, and commands an audience of 224,000 on the social media platform X, has conveyed his belief that Bitcoin might undergo a substantial downward correction, reminiscent of the events from four years ago when BTC experienced an over 80% retracement from its 2017 peak.

Bluntz conveyed, “The longer Bitcoin remains in this lower range without a rebound, the stronger my inclination becomes that we could be on the brink of a significant macro pullback, much like the one witnessed in 2019. The prevailing momentum is evidently losing steam, progressively eroding the bullish sentiment.”

According to the pseudonymous analyst, it’s possible that Bitcoin could witness a brief rally before plunging significantly. He remarked, “It wouldn’t come as a surprise to observe the surpassing of the previous high at $30,200 initially; this scenario appears more logical than contemplating a breakdown from the current levels.”

At the time of composing this piece, Bitcoin is exchanging hands at $29,124. Bluntz also pinpointed two alternative cryptocurrencies, VeChain (VET) and Hedera (HBAR), as potential contenders for an upward move if Bitcoin follows suit.

Several seemingly dormant coins have caught my attention due to their promising outlook. VeChain is on the verge of a promising development, while Hedera is showing signs of a robust breakout,” stated Bluntz.

The decentralized enterprise blockchain VeChain is currently valued at $0.0172, while the native token of the distributed ledger project Hedera is trading at $0.0619.

Commenting on the blockchain indexing protocol, The Graph (GRT), the analyst noted, “GRT is demonstrating commendable progress here and is on the brink of a substantial breakout. The only setback is its liquidity, which is far from ideal. I suppose I’ll have to hold onto my current position for now.”

In conclusion, the crypto trader’s words suggest a note of caution for Bitcoin enthusiasts, indicating the possibility of a significant price correction. He also sheds light on potential opportunities within the altcoin space, particularly focusing on VeChain, Hedera, and The Graph.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.