A closely watched trader in the crypto space says there could be opportunities for select altcoins once Bitcoin (BTC) stabilizes.
Pseudonymous analyst The Flow Horse tells his Telegram subscribers that the more liquid altcoins in the top 100 could provide good entry points for bulls after their 50% dip.
The trader mentions the memecoin POPCAT with a cat theme as an example.
“A friendly reminder that alts can probably move a little lower if Bitcoin does, but after this kind of markup, the 50% retracement level on liquid top 100 pairs is often a very good level to bid.
I would start by creating filters and alerts for charts approaching their 50% retracement level, Popcat is a good example.”
The Flow Horse also says that Celestia (TIA) and SEI are “good examples” of coins showing strength, despite Bitcoin currently correcting and dragging down much of the digital asset markets.
The trader says it is more than likely that BTC will consolidate below the $100,000 level, with some money flowing out of the risk curve into altcoins.
“Regardless of the short term outcome, I think there is one thing you can take from BTC, no need to force anything here, BTC will probably take a bit of a breather before any real move above 100,000.
Ideally, the market will come to an agreement that we don’t have to worry about much lower prices, or that it doesn’t make sense yet, and we could see some of the capital coming out of Bitcoin going into alts.”
At the time of writing, Bitcoin is trading at $94,201.
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Featured image: Shutterstock/Mia Stendal/Vladimir Sazonov