Bitcoin Price Drawdown: Technical Expert Gives Reasons On Why He Is No Longer Bullish On BTC And Crypto
Technical expert Tony Severino has revealed why he is no longer bullish on BTC and other crypto assets amid the recent Bitcoin price drawdown. The analyst had also earlier raised the possibility of the flagship crypto dropping to as low as $22,000.
Expert Reveals Why He Is No Longer Bullish Amid Bitcoin Price Drawdown
In an X post, Severino alluded to market cycles and the Elliott Wave Theory to explain why he is no longer bullish on BTC and other crypto assets. In his accompanying chart, he highlighted the fact that the Bitcoin price recorded a 100% on both Wave 1 and Wave 5 in this bull run, which dates back to around November 2022.
The expert explained that this suggests the top is in, as Wave 1 and Wave 5 typically record similar price gains. However, the analyst noted that there is still the possibility of the Bitcoin price going higher since it could record a similar gain to the one recorded in Wave 3 after the Bitcoin ETFs launched last year.
Based on Elliot Wave Theory, at least two of the Waves must have similar price gains, which makes it a possibility that Wave 5 could replicate Wave 3’s performance. However, Severino looks to be betting against that happening as he also highlighted the euphoria around Donald Trump’s inauguration as another reason why the top is likely in and why he is no longer bullish on the Bitcoin price. He noted that the euphoria phase always comes just before the cycle top.
The technical expert admitted that the euphoria around Trump’s inauguration wasn’t as much as he expected. However, he proceeded to highlight a pattern with the cyclical crests, which is another reason he is no longer bullish on BTC and other crypto assets. Severino noted that Wave 1 and Wave 3 topped right at the cyclical crest. As such, he remarked that it makes sense that Wave 5 will also top at the cyclical crest.
Other Indicators Which Suggest BTC Has Topped
Tony Severino also alluded to other chart patterns and indicators, suggesting that the Bitcoin price has topped and explaining why he is no longer bullish on BTC. He highlighted a curve trendline on another chart, which showed that the flagship crypto has reached the point of maximum financial opportunity in this market cycle.
The technical expert went on to highlight indicators like the Parabolic SAR (Stop and Reverse), which suggests that the Bitcoin price’s parabolic phase in this cycle has stopped and that a reversal may be imminent. Another indicator he alluded to is the Average Directional Index (ADX), which Severino remarked shows that BTC’s uptrend strength is weakening.
He affirmed that the upward momentum for the Bitcoin price is weakening, and it doesn’t look like it will get back up anytime soon. The expert highlighted the Logarithmic MACD as another indicator that proves that momentum for the flagship crypto in this market cycle is declining.
Featured image from Adobe Stock, chart from Tradingview.com
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