In dissecting the recent price behavior of smart contract platform Solana ($SOL), a popular cryptocurrency strategist known or accurately calling the cryptocurrency market bottom in 2018, has suggested he would gain interest in the cryptocurrency again when it gets to the $low $70s.”
In a post shared on the microblogging platform X (formerly known as Twitter) with their over 230,000 followers, analyst Bluntz Capital pointed to a pattern in recent price movements when using Elliott Wave Theory as a “B wave triangle.”
Elliott Wave Theory, a popular form of technical analysis, postulates that market trends unfold in repetitive cycles driven by investor psychology. These cycles typically consist of a five-wave progression in the direction of the prevailing trend, followed by a three-wave corrective phase.
Ralph Nelson Elliott developed the Elliott Wave theory in the 1920s after he observed and identified “recurring, fractal wave patterns.” These fractal wave patterns are based on the psychology of the masses.
The specific mention of a “B wave triangle” in this context refers to a unique pattern that emerges within the B wave, one of the stages in the corrective phase. Triangles in Elliott Wave Theory are identified by converging trend lines that connect a series of increasing and decreasing peaks and troughs.
Comprising five sub-waves, these triangles are continuation patterns, indicating a pause in the market’s larger trend.
Thus, when analyzing SOL’s recent sideways trading, the term “B wave triangle” suggests that this price consolidation is part of a broader corrective phase in the market cycle. The formation of this triangle pattern within the B wave implies a temporary halt in price movement.
It’s worth noting Bluntz is famous for, in June 2018, predicting the bear market that was seeing the price of bitcoin drop from a then all-time high near $20,000 would end with the coin trading at $3,200. The prediction was nearly accurate, as BTC hit the target in December of that year.
Featured image via Unsplash.
