A widely followed analyst is issuing a warning to crypto bears, saying that their window is closing to push the market to lower levels.
Pseudonymous analyst the Flow Horse tells his 220,100 followers on the social media platform X that he’s bullish on Solana (SOL)-based meme token dogwifhat (WIF).
According to the analyst, WIF is one of the fastest horses in the memecoin sector and he believes it will continue to show relative strength until the end of the bull market.
“Re-buying WIF.
Saying you are no longer bullish the strongest memes is saying that you think the lineup of market participants has rotated out and/or their preferences have all changed.
Very unlikely, [what’s] more likely is that it just persists until the end of the cycle.”
The crypto strategist also notes that while countless memecoins have been issued this year, he thinks that traders will always look at the ones that stand out.
“Unfortunately, there definitely is a ton of dilution, since creating a meme now has zero friction. Capital still picks a favorite.”
At time of writing, WIF is worth $2.30, up over 14% in the past day.
As for the broader digital asset market, the Flow Horse says that crypto bears are at risk of falling victim to a short squeeze after altcoins rallied last week while Bitcoin consolidated at $60,000.
A short squeeze happens when traders who borrow an asset at a certain price in hopes of selling it for lower to pocket the difference are forced to buy back the assets they borrowed as momentum moves against them, triggering further rallies.
Says the analyst,
“Alts did not overshoot Bitcoin on the last drawdown.
-A lot of people run long short BTC/ALTs.
Clock is ticking for bears before another squeeze happens.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: Midjourney