Trader Bluntz Maps Out Bitcoin (BTC) Correction Target, Says Solana (SOL) Memecoins dogwifhat (WIF) and Popcat (POPCAT) Are Flashing Bearish Divergences

A widely followed analyst and trader is offering his outlook on Bitcoin (BTC) and two memecoins amid a bounce in crypto prices.

A popular crypto analyst is sharing his views on Bitcoin (BTC) and two memecoins as digital asset prices attempt to rally.

The analyst, known as Bluntz, has 284,000 followers on the social media platform X, and he is sharing his analysis on the price of Bitcoin, which has risen by over 15% since early October. Bluntz tells his followers that the recent rally in BTC may be setting up for a correction.

Bluntz uses the Elliott Wave Theory in his technical analysis, and he says that Bitcoin’s recent rally from the October low of $59,000 has unfolded in a five-wave pattern.

Bluntz’s chart suggests that the correction could unfold in a three-wave pattern, and it may take Bitcoin down to around the $62,000 level. According to the Elliott Wave Theory, the main trend in the price of an asset unfolds in a five-wave pattern, while a correction takes place in a three-wave pattern.

Bluntz says,

“Wouldn’t be surprised to see another pullback here throughout the week before the real breakout attempt next week.”

At the time of writing, Bitcoin is trading at $67,710.

Bluntz also discusses two memecoins in the Solana (SOL) ecosystem, dogwifhat (WIF) and Popcat (POPCAT), and he notes that both assets are displaying bearish divergences on the daily time frame.

A bearish divergence is a technical analysis pattern that occurs when the price of an asset hits higher highs, but a technical indicator, such as the Relative Strength Index (RSI), an oscillator used for identifying oversold or overbought conditions, records lower highs.

Bluntz says,

“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.”

At the time of writing, WIF is trading at $2.63, up by around 75% over the past 30 days. POPCAT is trading at $1.25 at the time of writing, up by over 80% over the same period.

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