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.

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…”

Source: Bluntz/X

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.”

Source: Bluntz/X

At time of writing, Bitcoin is worth $60,593, up 3.31% on the day.

Generated Image: DALLE3