A widely followed analyst and trader is offering his outlook on Bitcoin (BTC) and two memecoins amid a bounce in crypto prices.
The analyst pseudonymously known as Bluntz tells his 284,000 followers on the social media platform X that Bitcoin could experience a correction before trending higher.
According to the pseudonymous analyst who regularly applies the Elliott Wave theory in his technical analysis, Bitcoin’s ongoing rally of over 15% from the October low of under $59,000 has occurred in a five-wave pattern.
Based on the pseudonymous analyst’s chart, it appears that Bluntz is suggesting that a correction could take place in a three-wave pattern with Bitcoin potentially reaching around $62,000. According to the Elliott Wave theory, the main trend of the price of an asset occurs in a five-wave pattern while a correction takes place in a three-wave pattern.
“…wouldn’t be surprised to see another pullback here throughout the week before the real breakout attempt next week.”
Bitcoin is trading at $67,710 at time of writing.
Turning to dogwifhat (WIF) and Popcat (POPCAT), Bluntz says the two memecoins in the Solana (SOL) ecosystem are experiencing bearish divergences on the daily time frame. A bearish divergence occurs when the price of an asset hits higher highs while a technical indicator such as the Relative Strength Index (RSI), an oscillator used for identifying oversold or overbought conditions, records lower highs.
“Sigh, these bearish divergences aren’t ideal for WIF and POPCAT, these are both on my list for bidding when the time is right but they’re going to need a little bit of time to play out I think.”
WIF is trading at $2.63 at time of writing, up by around 75% over the past 30 days. POPCAT is trading at $1.25 at time of writing, up by over 80% over the same period.