A closely followed crypto strategist warns that while many digital assets are rising crypto- predicts a pullback in the market.
Pseudonymous analyst The Flow Horse, also known as Cantering Clark, told his 182,300 followers on social media platform X that two projects in particular are at risk of a deep decline. says. Ethereum (ETH) rival Avalanche (AVAX) and RUNE, the native asset for the decentralized cross-chain liquidity protocol THORChain.
I started short selling this morning. So far only AVAX and RUNE. Why two power couples? Overextension is becoming a reality and everything will recede further than you want…
I think you can expect pullbacks of at least 30%.
NEWS CONTINUES BELOW
While Avalanche is trading at $21.35 at the time of writing, down 11.38% in the last 24 hours, RUNE is trading at $6.19 at the time of writing, down 1.53% in the last 24 hours.
The trader also suggests that Ethereum may drop below $1,900 for a short period of time, but rise again with a large demand for ETH in this lower price range.
ETH was arguably a better hedge and short instead of BTC. Something tells me we’ll see more extensive stop runs and trend tests before we start again. The argument for tracking the strength of ETH has been historically evident, so it will be useful to look for this during any BTC consolidation. I want to buy a bounce under $1,900, but it seems like everyone else does too.
Ethereum is trading at $1,950 at the time of writing.
The trader also says that Bitcoin (BTC) is respecting a resistance level and is likely heading lower.
If we look at the amount of orders waiting to be filled, the path of least resistance for BTC is downwards. My feeling is that this recent rally was easy due to an empty pocket left by liquidations, and anyone waiting for the decline is passively adding long to the market. I’m staying in this short trade that I mentioned last night.
However, the trader says he remains bullish on Bitcoin long-term as long as it remains above the $30,000 level.
Almost 2,000 points is good enough for me. I won’t go lower while the dollar is above 30,000.
Bitcoin At the time of writing, it is trading at $36,444.