Altcoins could face a bearish outlook if Bitcoin reaches new local highs, according to popular crypto trader Bluntz. In a tweet to his 226,000 followers on the social media platform X, Bluntz states that altcoins have been performing well because Bitcoin has been trading in a range over the last eight days. However, he warns that once Bitcoin breaks out of this range, it will “suck the life back out of your altcoins,” and advises traders to shift their focus back to Bitcoin.
Bluntz, who applies the Elliott Wave theory in his technical analysis, believes that Bitcoin is currently on the fourth wave before it breaks out. The Elliott Wave theory suggests that the price of an asset moves in a five-wave pattern. Based on Bluntz’s charts, Bitcoin has one more leg to complete in the bullish trend that started last month. He predicts that Bitcoin could surge to as high as $42,000 and beyond in the fifth wave.
The analyst also compares Bitcoin’s current rally to previous rallies in April 2019 and October 2020. He emphasizes the power of a high timeframe weekly range breakout on BTC. In April 2019, after breaking out of a weekly range, Bitcoin experienced a surge of around 160% until June of that year. Similarly, in October 2020, Bitcoin broke out of a weekly range and soared by around 400% to reach its then all-time high of about $65,000 in April 2021.
At the time of writing, Bitcoin is trading at $34,441. However, Bluntz’s analysis suggests that it has the potential for further upward movement in the near future.
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It’s important to note that the opinions expressed by Bluntz are not investment advice. Investors are advised to conduct their own research and analysis before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The cryptocurrency market is highly volatile, and past performance is not indicative of future results.
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In conclusion, altcoins may face a bearish outlook if Bitcoin reaches new local highs. According to Bluntz, the recent performance of altcoins is due to Bitcoin trading in a range over the past eight days. However, once Bitcoin breaks out of this range, it is expected to have a significant impact on altcoins. Bluntz advises traders to shift their focus back to Bitcoin and predicts that Bitcoin could surge to as high as $42,000 and beyond. However, it is important for investors to conduct their own research and exercise caution when investing in the highly volatile cryptocurrency market.
