A closely followed trader in the crypto space says there could be opportunities for some altcoins once Bitcoin (BTC) stabilizes.
An analyst under the pseudonym The Flow Horse tells his Telegram followers that the more liquid altcoins in the top 100 could be good entry points for bulls after a 50% drop.
As an example, the trader cites the cat-themed memcoin POPCAT.
“A gentle reminder that alternative currencies could likely go a little lower if this happens to Bitcoin, but after this type of premium, a 50% retracement level for liquid top 100 pairs is often a very good level to bet on.
I would start creating filters and alerts for charts that are approaching 50% retracement levels, Popcat is a good example.”
The Flow Horse also claims that Celestia (TIA) and SEI are “good examples” of coins that are showing strength despite Bitcoin currently correcting and dragging much of the digital asset markets with it.
The trader says it is more than likely that BTC will consolidate below the $100,000 level and some money will move from the risk curve to altcoins.
“Regardless of the short-term outcome, I think you can take something from BTC, no need to force anything here, BTC in my opinion will likely still take a short breather before any real move higher 100 thousand.
Ideally, the market comes to an agreement that we don’t need to worry about a significant price decline or that it doesn’t make sense yet, and we can see some of the capital that does come from Bitcoin move into altcoins.”
At the time of writing, Bitcoin is trading at $94,201.
