dailyhodl.com
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 a 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 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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