A closely followed crypto strategist is predicting a pullback in the crypto market as many digital assets soar.
Pseudonymous analyst The Flow Horse, also known as Cantering Clark, tells his 182,300 followers on the social media platform X that two projects in particular are at risk of deep decline: Ethereum (ETH) competitor Avalanche (AVAX) and RUNE, the native asset for the decentralized cross-chain liquidity protocol THORChain.
“I started shorting this morning. So far just AVAX and RUNE. Why two strong pairs? The overextension is getting real, and everything is going to pull back more than you would like…
I think you can expect at least 30% pullbacks.”
Avalanche is trading for $21.35 at time of writing, down 11.38% in the last 24 hours, while RUNE is trading for $6.19 at time of writing, down 1.53% in the last 24 hours.
The trader also suggests Ethereum may briefly dip below $1,900 only to be driven back up by a large demand for ETH at that lower price range.
“ETH was arguably the better hedge and short instead of BTC. Something tells me that we see more thorough stop runs and trend testing before any resumption. The argument for ETH strength to follow has been historically evident, so looking for that during any BTC consolidation will be useful. I would like to buy a spike below $1,900, but apparently, everyone else would as well.”
Ethereum is trading for $1,950 at time of writing.
The trader also says that Bitcoin (BTC) has respected a resistance level and is likely headed lower.
“The path of least resistance is down for BTC if we are going by the amount of resting orders waiting to get filled. My thinking is that this recent spike-up was easy due to an empty pocket left by liquidations and that anyone waiting for the dip passively added long at market. Staying in this short trade I mentioned last night.”
However, the trader says he remains long-term bullish on Bitcoin as long as it remains above the $30,000 level.
“Almost 2,000 pts is good enough for me. Not going to turn bearish while above $30,000.”
Bitcoin is trading for $36,444 at time of writing.
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