Investors follow some analysts on which altcoins to invest in. In this respect, a closely followed crypto strategist cites the latest comments. It issues a warning to investors that some altcoins, including SHIB, seem poised for a corrective move after rallying in the past two weeks. Here are the details…
Analyst awaits correction for SHIB and other coins
Anonymous analyst Cheds has 275,200 Twitter followers on meme coin Shiba Inu (SHIB), peer-to-peer payment protocol Litecoin (LTC), Blockchain-based gaming ecosystem The Sandbox (SAND), decentralized exchange Uniswap (UNI), and Blockchain scaling solution Polygon (MATIC). He says he’s stopped. According to Cheds, bearish seekers or bearers in crypto should watch these five altcoins closely for potential pullbacks.
Some altcoins worth watching for a short setup$SAND$LTC$SHIB$MATIC$UNI https://t.co/SHmhKu9FUc
— Cheds (Book 3 is coming soon) (@BigCheds) July 20, 2022
Cheds also underlines that the market structure of many altcoins is similar to Litecoin’s current price action. After collecting over 20 percent since July 13, the uptrend states that signs of exhaustion are flashing. For LTC, the analyst uses the following statements:
LTC’s four-hour [chart] points to the formation of the ‘head and shoulders’ pattern. In most of the market, there are three to four pushes with different peaks. It has this type of appearance, with several variations.
Weakness on the horizon for Bitcoin
Traders view the top of the head and shoulders as a sign that a market reversal may be on the horizon. As for Bitcoin (BTC), Cheds points to a bearish trend. He states that BTC is starting to show signs of weakness. In this regard, the analyst warned BTC’s followers last week that the leading crypto-asset is starting to show signs of weakness after a metric showed a bearish trend. The analyst used the following statements:
BTC and ETH differ on the daily chart with the balance volume (OBV) on both.
OBV is a technical indicator that measures buy and sell volume. A downtrend indicates a trend reversal. According to Cheds, a Bitcoin correction to $20,600 will resolve the OBV bearish divergence. The crypto analyst also notes that the 200 moving average on the four-hour chart is hovering around $20,000. The analyst uses the following statements:
The BTC 200 four-hour moving average is near $20,900.
At the time of writing, Bitcoin is changing hands at $21,895, down 3.4 percent on the day. The overall cryptocurrency market has lost a similar amount. However cryptocoin.comAs we have also reported, it has managed to hold above $1 trillion and is around $1.05 trillion.
