A cryptocurrency strategist known for his bottom predictions believes the altcoin market is one correction away from triggering rallies.
Pseudonymous analyst Bluntz tells his 269,600 followers on social media platform X that he keeps an eye on the TOTAL3 chart, which tracks the total market capitalization of cryptocurrencies, excluding Bitcoin, Ethereum (ETH) and stablecoins.
Bluntz says TOTAL3, which is used to gauge the performance of altcoins, appears poised to decline before regaining bullish momentum.
“Although TOTAL3 looks structurally stunning, a very clear five-wave rise from the lows on the four-hour chart.
I still think an ABC correcting this impulse from the lows is materializing and has not yet made a C wave lower.
I’ll be careful not to be too long for now, good entries will come…”
The analyst applies Elliott Wave Theory, which states that a bullish asset tends to see gains after completing an ABC decline. Based on the trader’s chart, he appears to predict that TOTAL3 will drop to $530 billion for Wave C before rallying to $620 billion.
At the time of writing, TOTAL3 is trading at $576.212 billion.
Looking at Bitcoin, the trader believes BTC is also likely to see a wave C correction towards the $55,000 level before a rally towards $65,000.
“BTC saw a decent uptick from these lows on Friday. However, I think we could break out a bit further and make another leg lower around $55,000.
I base this reflection on TOTAL3 which seems quite clear to me.
At the time of writing, Bitcoin is worth $60,593, up 3.31% on the day.
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