dailyhodl.com
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.
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