Bitcoin Bearish Divergence Signals End of Rally Says Crypto Strategist

A crypto strategist who accurately predicted the peak of Bitcoin in January has issued a warning that the recent recovery rally of Bitcoin may be coming to an abrupt end. The pseudonymous analyst, known as Bluntz, shared his insights with his 318,200 followers on the social media platform X. According to Bluntz, Bitcoin is currently forming a bearish divergence on the daily chart, which is a signal that the bullish momentum is weakening despite the asset's price moving higher or sideways.

Bluntz cautioned his followers, stating, “There’s a daily BTC bear div brewing here if it closes red by [today]. It’s unfortunate that it has appeared before fresh all-time highs, but it’s the first one since last year. Be careful with longs in my opinion.” At the time of writing, Bitcoin was trading at $105,546.

In contrast to his bearish outlook on Bitcoin, Bluntz expressed optimism about gold. He believes that the precious metal is on the verge of a significant rally to a new all-time high after completing an ABC corrective wave. Bluntz, who practices the Elliott Wave theory, suggests that gold will rally to a new record high of $3,600. He shared a chart indicating this potential upward movement, stating, “Gold gathering steam for the next leg up here.” At the time of writing, gold was valued at $3,221.

Additionally, Bluntz provided his predictions for the memecoin Floki (FLOKI). He anticipates that the altcoin will dip to around $0.00008 before surging to $0.00018. Bluntz noted, “Looks like FLOKI is one of the few memes with a clear impulse five-wave rise from the lows on the daily, indicating the low is in. Would be very interested in bidding pullbacks around the 50 fib if given. Have always had a soft spot for this one.” At the time of writing, FLOKI was valued at $0.000098.