A leading analyst warns that crypto assets could face more downside during the current market correction.
Pseudonymous analyst and trader Bluntz tells are 222,800 Twitter followers that altcoins are trending down in the major timeframes and could fall much more than currently expected.
Citing the example of Polygon (MATIC), Bluntz says that the Ethereum (ETH) layer-2 scaling solution has slipped just below a rising channel and is moving lower.
“So many altcoins are now losing a really high time frame structure. MATIC, for example, is breaking off a 12-month bear flag and just had a solid close below a one-year channel.
Personally, I’m starting to think it’s going to be a lot lower than many expect.”
According to the analyst and trader, MATIC could plummet up to 54% from current levels.
“[A drop to] $0.40 – $0.50 more reasonable I think.”
Polygon is trading at USD 0.869 at the time of writing.
As for Ethereum, Bluntz say that the second-largest crypto asset will dip below a weeks-long bullish channel shortly after closing.
His chart shows that Bluntz is out for Ethereum to fall below $1,700. ETH is trading at $1,842 at the time of writing.
“The retest of the underside of ETH’s bear flag seems done. I think the bottom will fall out pretty soon here.”
Next up is Binance Coin (BNB), the utility token of the Binance Smart Chain. Bluntz say that BNB has come under severe pressure when combined with Bitcoin, falling more than 35% since the end of last year.
“Of all the majors, BNB has got to have one of the most ferocious downtrends on its BTC pair, literally only down, not even remotely sideways like ETH/BTC has been.”
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