A closely followed trader believes that the crypto market is inching toward the end of its rally following a stellar performance last year.
Pseudonymous analyst The Flow Horse tells his 196,800 followers on the social media platform X that he believes the year-long bullish run of the crypto markets is about to face exhaustion.
According to the trader, his short to mid-term bearish view would be invalidated if investors poured massive liquidity into Bitcoin (BTC) exchange-traded funds (ETFs).
The U.S. Securities and Exchange Commission (SEC) is expected to make a decision on a series of BTC ETF applications between now and tomorrow.
Says The Flow Horse,
“Unless ETFs start really printing, we have used the juice, in my opinion. Not permanently, but can see a long period of chop only and the market taking back unskilled gains.
Think of how ridiculous it is that people are still like, ‘Things are just getting started… The biggest bull rally is about to begin.’
Do you sleep under a rock? The printer has been printing for like a year straight.”
The trader goes on to say that the long consolidation period can last for half a year or more.
“Six to eight months is fine. It is the immediate few months I am concerned with.”
While The Flow Horse sees the crypto markets correcting and consolidating in the coming months, he believes that Bitcoin will continue its long-term bullish trajectory.
“Positive drift from passive flows in a new asset that is championed by younger generations. One of the reasons why now I can’t even entertain conversations about ‘What if Bitcoin is done appreciating?’ The rate of return will taper off but long-term up and to the right.”
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