A popular crypto analyst says a number of altcoins are due for “brutal” bear market rallies as digital assets consolidate well below their all-time highs.
The pseudonymous analyst known as Pentoshi tells his 564,000 Twitter followers that crypto is still in a bear market, but that unexpected relief rallies will pop up to keep traders second-guessing.
Pentoshi uses Bitcoin’s rallies in 2018 as an example.
“Inside a macro downtrend you will have countertrend rallies take place that end up forming macro lower highs typically on [high-time frame] charts like 3-day-1-week that forms your market structure. Some of this will be shorts closing in order to take profits and short from higher.
Which eventually leads to re-distribution after a few weeks of strong rallies 30-50% or even 2x depending on how the market structure is formed. People get comfortable enough believing that a new macro trend has changed before rug-pulling themselves.”
The analyst says that over the next few weeks, there will be rallies that fool traders into believing a new bull market has begun, turning them into exit liquidity for sellers.
When it comes to which altcoins to watch, Pentoshi says smart contract platform Solana (SOL) will catch bears way off guard. He predicts up to a 50% rally in SOL from current prices before continuing its downtrend.
“It is time in my opinion.
Probabilities and history say this likely rallies harder than people think too.
Think we see $58-60.”
The closely followed analyst also has his eye on Ethereum rival Avalanche (AVAX) for potential bull runs. He forecasts roughly a 38% rally from current prices.
“Bouncing off the same spot from last week where we got the 25% rally from
Potential double bottom forming targeting near mid again and potentially range high.”
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Source : dailyhodl.com