A crypto strategist known for calling bottoms believes the altcoin market is one correction away from unleashing rallies.
Pseudonymous analyst Bluntz tells his 269,600 followers on the social media platform
Bluntz says TOTAL3, which is used to measure the performance of altcoins, appears poised for a step back before regaining bullish momentum.
“Although TOTAL3 looks great structurally, there is a very clear five-wave uptick from the four-hour lows [chart].
I still think an ABC correcting momentum from the lows is materializing and needs another C wave down.
I would be careful to stay as long as possible now, there will be good entries…”
The analyst applies Elliott Wave theory, which states that a bullish asset tends to see rallies after completing an ABC move down. Based on the trader’s chart, he seems to predict that TOTAL3 will fall to $530 billion for the C wave, before rising to $620 billion.
At the time of writing, TOTAL3 is trading at $576.212 billion.
Looking at Bitcoin, the trader thinks BTC is also due for a C-wave correction towards the $55.00 level, ahead of a rally close to $65,000.
“Decent gain for BTC from Friday’s lows. However, I think we might be able to get away from it a bit and take another step lower around $55,000.
I base this thought on TOTAL3, which looks pretty clear in my opinion.”
At the time of writing, Bitcoin is worth $60,593, up 3.31% on the day.
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