A widely followed trader and analyst whose prediction of a crypto pullback at the beginning of the year was on the money is outlining his outlook on Bitcoin (BTC) and altcoins, including one Ethereum (ETH) competitor.
The analyst pseudonymously known as Bluntz tells his 327,300 followers on the social media platform X that Bitcoin dominance is “going to bounce,” suggesting that the crypto king could outperform the rest of the crypto market.
Bitcoin dominance is the market cap of the flagship digital asset relative to the market cap of the rest of the crypto assets.
Based on Bluntz’s chart of Bitcoin dominance on the four-hour timeframe, it appears he’s suggesting that Bitcoin dominance has completed a five-wave pattern to the downside and is now trending upwards.
The Elliott Wave theory states that the main trend occurs in a five-wave pattern while a correction takes place in a three-wave pattern.
Bitcoin dominance is currently at around 59%, down by around seven percentage points from the cycle high recorded in June.
Next up is Ethereum rival, Solana (SOL). According to Bluntz, Solana is “en route to all-time highs,” which could see the sixth-largest crypto asset by market cap appreciate by around 43% from the current level.
The pseudonymous analyst further says that Solana is poised to break out against Bitcoin on the three-day timeframe, having completed a three-wave pattern to the downside.
Solana is trading at $205 at time of writing, down by around 30% from the all-time high reached in January.
Generated Image: Midjourney