Pseudonymous analyst Cheds tells his 276,700 Twitter followers that crypto markets is flashing multiple bearish signals after witnessing a relatively strong week.
“Today, the crypto market put out many outside bars, high wave candles and dark cloud covers etc. You’d be asleep at the wheel not to look for short setups in case we pause and follow through on that.”
Outside bars, high wave candles and dark cloud covers are all candlestick patterns indicating either indecisiveness among market participants or a possible shift in momentum after a rally.
One altcoin on the trader’s radar is blockchain scaling solution Polygon. According to Cheds, MATIC is currently struggling to take out its immediate resistance around $1.00, suggesting that the altcoin could be poised for a corrective move.
“MATIC another clean short setup should BTC stall. Mark $0.9297. Note the upthrust at underside supply and potential M [formation].”
Looking at the analyst’s chart, Cheds appears to be targeting $0.74 for MATIC, indicating a nearly 25% downside risk at Polygon’s current price of $0.98.
Another altcoin on the trader’s list is Cosmos, an ecosystem of blockchains designed to scale and communicate with each other. According to Cheds, ATOM is a possible target for bears around its current price of $10.78.
“ATOM possible short candidate here $10.778.”
As for Bitcoin, Cheds says he sees BTC possibly maintaining its bullish momentum until it hits resistance around $26,000.
“BTC eyes on May 12th lows as we press the recent high.”
At time of writing, BTC is trading for $23,724.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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