A closely followed analyst warns that the crypto market may be a few days from witnessing an extended corrective period.

Pseudonymous analyst The Flow Horse tells his 205,700 followers on the social media platform X that crypto traders appear to be exuberant following the marketwide rally over the last few weeks.

According to the crypto strategist, Bitcoin (BTC) will likely see one more move to the upside before printing a temporary top.

“I’m thinking we are pretty close to a decent length top. Months not years, obviously.

Thinking the halving +/- one month

Form a higher low and consolidate for a bit.

There is a lot of dispersion and plenty of signs are there. Also, it doesn’t help risk if NVDA (Nvidia) tops for a bit around the conference, which wouldn’t be surprising either.

One-to two-month consolidation after a push above $70,000 would be my guess.” 

But before crypto sees a broader correction, The Flow Horse says an event could trigger rallies for one group of altcoins. According to the analyst, the artificial intelligence (AI) crypto sector may witness a big burst to the upside in anticipation of the Nvidia GTC, an AI-focused global conference slated for March 18th.

“We are just [eight] days away from the Nvidia conference. Memecoins are currently the hotter segment of the meme/AI barbell. However, this should shift, just in time for a pivot back into AI, as people crowd in at the last minute for what is probably another really easy event-driven trade.” 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A closely followed trader says memecoins and an additional crypto subsector are likely to outperform the rest during this market cycle.

Pseudonymous analyst The Flow Horse tells his 204,000 followers on the social media platform X that traders who made big gains on memecoins will likely rotate their capital to other crypto assets and trigger another round of altcoin rallies.

“Forget the wealth effect from Bitcoin or ETH. The profit taking on memecoin capital will create another alt cycle.” 

Other than meme crypto assets, the top analyst is also bullish on altcoins that belong to the artificial intelligence (AI) subsector.

“Barbell AI and memecoins portfolio seems to be the [degenerate] play this cycle.” 

While The Flow Horse sees big potential for AI and memecoins, he warns that the crypto markets are starting to flash signals of being overheated. The trader is looking at altcoin funding, which tracks the fees paid by crypto traders who hold futures or margin positions.

According to the crypto strategist, altcoin funding is hovering at an elevated level, suggesting that a correction to flush out overleveraged traders may be in the cards.

“I’ll just say this. The last time we were about to break an all-time high (ATH), we spent a month consolidating under the level. Alt funding was around this level but ended up doing 2x these values after ATH break.

BTC dropped 20%, and a lot of alts dropped double that.

Right now we have four sessions all trading within the same tight range. Expect some f*ckery.

You can always treat the market like the S&P [500] – long and strong above ATHs (Bitcoin in this case), and defensive below.” 

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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A popular crypto trader is pinpointing potential entry points for a trio of red-hot artificial intelligence (AI) altcoins.

The pseudonymous analyst known as Altcoin Sherpa encourages his 207,700 followers on the social media platform X to pay attention to Fetch.ai (FET), Worldcoin (WLD) and Bittensor (TAO).

“Given how hard some of these are going, I would view the .236 fib and the .382 fib areas as good starter points. WOULD NOT GO ALL IN on any one entry. DO NOT FOMO. A pullback probably coming soon.

These are more for trades, not investments. For investments, you want to just go ahead and scale in and then go into a coma and don’t trade it/let it sit for a while.

I wouldn’t be surprised to see some sort of mild pullback or consolidation soon. If you see some ranging for a few days at these high levels, that’s pretty decent. You want the volume to heavily die down.”

Traders use Fibonacci extensions in technical analysis to estimate profit targets and price pullbacks. They are based on Fibonacci ratios.

Fetch.ai, a decentralized artificial intelligence platform for applications, is trading at $1.06 at time of writing. The potential entry points on Altcoin Sherpa’s chart for the asset are $0.7669 and $0.6856.

Worldcoin, the controversial eye-scanning biometric crypto project that’s focused on digital identity, is trading at $6.72 at time of writing. Altcoin Psycho’s chart for the asset indicates potential entry points at $6.618 and $5.764.

Bittensor, a decentralized blockchain platform that focuses on machine learning and AI, is trading at $628.33 at time of writing. Altcoin Psycho indicates that potential entry points are at $586.68 and $517.75.

The analyst also notes traders should look out for volatility, high volume, and wicks in both directions.

“That usually means some sort of local or bigger top is here.

Play it by ear but yeah, I do think that AI plays are still the ones to focus on. The leaders like TAO and WLD are the 1s to watch; when they start to pull back, everything else will too.

That being said, you should start to think about your AI bags for this cycle. It’s not too late. Don’t just sit sidelined because it’s ‘already pumped’.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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