A crypto strategist known for calling bottoms believes the altcoin market is one correction away from igniting rallies.
Pseudonymous analyst Bluntz tells his 269,600 followers on the social media platform X that he’s keeping an eye on the TOTAL3 chart, which tracks the total market cap of crypto excluding Bitcoin, Ethereum (ETH) and stablecoins.
[adinserter block="1"]Bluntz says TOTAL3, which is used to gauge the performance of altcoins, looks poised for a leg down before it regains bullish momentum.
“Although TOTAL3 structurally looks amazing, very clear five-wave rise from the lows on the four-hour [chart].
I still think an ABC correcting that impulse from the lows is materializing and has yet to do a C wave down.
I would be careful being max long right now, good entries will come…”
The analyst practices the Elliott Wave theory, which states that a bullish asset tends to witness rallies after completing an ABC move down. Based on the trader’s chart, he seems to predict that TOTAL3 will drop to $530 billion for the C wave before rallying to $620 billion.
At time of writing, TOTAL3 is trading for $576.212 billion.
Looking at Bitcoin, the trader thinks that BTC is also due for a C-wave correction toward the $55,00 level prior to a rally close to $65,000.
“Decent move up on BTC from those lows on Friday. However, I think we might come off a bit more and do another leg lower around $55,000.
Basing this thought around TOTAL3 which looks quite clear, in my opinion.”
At time of writing, Bitcoin is worth $60,593, up 3.31% on the day.
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