Crypto Analyst Pentoshi Projects Bear Market Rallies For SOL, AVAX
According to a widely-followed crypto analyst, known as Pentoshi, several altcoins are due for “brutal” bear market rallies as digital assets consolidate well below their all-time highs.
The analyst shared with 564.8K followers on Twitter followers that while crypto is still in a bear market, unexpected relief rallies will happen to keep traders confused.
Bitcoin’s 2018 rallies are an example.
“Inside a macro downtrend you will have countertrend rallies take place that end up forming macro lower highs typically on [high-time frame] charts like 3-day-1-week that forms your market structure. Some of this will be shorts closing in order to take profits and short from higher.
Which eventually leads to re-distribution after a few weeks of strong rallies 30-50% or even 2x depending on how the market structure is formed. People get comfortable enough believing that a new macro trend has changed before rug-pulling themselves.”
According to Pentoshi in the next couple of weeks, there will be rallies that will make traders believe that a new bull market has started, turning them into exit liquidity for sellers.
Solana (SOL)
According to Pentoshi says smart contract platform Solana (SOL), is one that will catch bears way off guard. He projects up to a 50% rally in SOL from current prices before it will fall down again.
“It is time in my opinion.
Probabilities and history say this likely rallies harder than people think too.
