Technical professional Tony Severino has revealed why he’s not bullish on BTC and different crypto belongings amid the current Bitcoin worth drawdown. The analyst had additionally earlier raised the potential for the flagship crypto dropping to as little as $22,000.
Expert Reveals Why He Is No Longer Bullish Amid Bitcoin Price Drawdown
In an X put up, Severino alluded to market cycles and the Elliott Wave Concept to clarify why he’s not bullish on BTC and different crypto belongings. In his accompanying chart, he highlighted the truth that the Bitcoin worth recorded a 100% on each Wave 1 and Wave 5 in this bull run, which dates again to round November 2022.
The professional defined that this implies the highest is in, as Wave 1 and Wave 5 usually document related worth beneficial properties. Nonetheless, the analyst famous that there’s nonetheless the potential for the Bitcoin worth going greater because it may document an identical achieve to the one recorded in Wave 3 after the Bitcoin ETFs launched final yr.
Primarily based on Elliot Wave Concept, at the very least two of the Waves will need to have related worth beneficial properties, which makes it a risk that Wave 5 may replicate Wave 3’s efficiency. Nonetheless, Severino seems to be to be betting towards that occuring as he additionally highlighted the euphoria round Donald Trump’s inauguration as another excuse why the highest is probably going in and why he’s not bullish on the Bitcoin worth. He famous that the euphoria part all the time comes simply earlier than the cycle high.
The technical professional admitted that the euphoria round Trump’s inauguration wasn’t as a lot as he anticipated. Nonetheless, he proceeded to focus on a sample with the cyclical crests, which is another excuse 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 Counsel BTC Has Topped
Tony Severino additionally alluded to different chart patterns and indicators, suggesting that the Bitcoin worth 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 professional went on to focus on indicators just like the Parabolic SAR (Cease and Reverse), which means that the Bitcoin worth’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 reveals that BTC’s uptrend power is weakening.
He affirmed that the upward momentum for the Bitcoin worth is weakening, and it doesn’t appear to be it’ll get again up anytime quickly. The professional 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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