Top trader warns of possible crypto pullback, says Polygon (MATIC) and Cosmos (ATOM) have clean bearish setups
One analyst who continues to build his following with timely altcoin calls is forecasting a correction in the crypto markets while keeping an eye on Polygon (MATIC) and Cosmos (ATOM).
Pseudonymous analyst Cheds tells his 276,700 Twitter followers that crypto markets are sending multiple bearish signals after a relatively strong week.
“Today the crypto market put out a lot of outside bars, high wave candles and dark cloud tops etc. They would sleep behind the wheel to avoid looking for short setups in case we stop and pull through.”
Outside bars, high-wave candles, and dark cloud cover are all candlestick patterns that indicate either indecisiveness among market participants or a possible shift in momentum following a rally.
One altcoin on the trader’s radar is blockchain scaling solution Polygon. According to Cheds, MATIC is currently struggling to clear its immediate resistance around $1.00, suggesting that the altcoin could be poised for a corrective move.
“MATIC another clean short setup should BTC falter. Mark $0.9297. Notice the upthrust on the underside supply and potential M [formation].”
Source: Cheds/Twitter
Looking at the analyst’s chart, Cheds appears to be targeting $0.74 for MATIC, indicating a nearly 25% downside risk to Polygon’s current price of $0.98.
Another altcoin on the list of traders is Cosmos, an ecosystem of blockchains designed to scale and communicate with each other. According to Cheds, ATOM is a possible target for bears around its current price of $10.78.
“ATOM possible short candidate here $10,778.”
As for Bitcoin, Cheds says it may keep BTC bullish momentum until it meets resistance around $26,000.
“BTC looks to May 12 lows as we push recent high.”
At the time of writing, BTC is trading at $23,724.
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Sergey Nivens/Voar CC
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.