A widely followed crypto trader is warning that altcoins face a bearish outlook in the event that Bitcoin (BTC) reaches new local highs.
Pseudonymous analyst Bluntz tells his 226,000 followers on the social media platform X that the reason altcoins have performed well is that Bitcoin has traded in a range over the last eight days.
“Make no mistake though, once BTC breaks out, it will suck the life back out of your altcoins.
Time to shift focus back to king BTC in my opinion.”
According to the analyst, who applies the Elliott Wave theory in his technical analysis, Bitcoin is currently on the fourth wave before it breaks out. The Elliott Wave theory theorizes that the main trend of the price of an asset moves in a five-wave pattern.
Based on Bluntz’s charts, Bitcoin now has one more leg to complete the bullish trend that commenced last month. Bitcoin could soar to as high as $42,000 and beyond in the fifth wave, per Bluntz.
Bluntz also says that going forward, Bitcoin is likely to rally in a manner similar to what it did in April 2019 and October 2020.
“Never underestimate the power of a high timeframe weekly range breakout on BTC.”
After breaking out of a weekly range in April 2019, BTC surged by around 160% until June of that year when the short-term rally ended. From October 2020 when Bitcoin broke out of a weekly range, BTC soared by around 400% to hit the then all-time high of around $65,000 in April of 2021.
Bitcoin is trading at $34,441 at time of writing.
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