A closely tracked crypto strategist says he’s expecting blockchain-based game Axie Infinity (AXS) to ignite a sharp corrective move.
In a new strategy session, pseudonymous crypto analyst Jack says that AXS is printing a massive reversal structure on the three-day that could foreshadow a heavy sell-off event.
“This would go down the drain so much at least down here [$15.90], which is over 50%. This would also indicate to me [the] general sentiment in the market. If coins like this, the most speculative kind of assets in the crypto sphere start puking that much, especially when you consider that this is already 75% [down]… It wouldn’t surprise me the least if that happens.”
Looking at Jack’s chart, AXS appears to be forming a large head and shoulders pattern, a formation that traders use to spot potential bearish reversals.
At time of writing, AXS is trading at $47.90, up over 5% in the last 24 hours.
As for Bitcoin (BTC), the crypto strategist says that a short-term bounce for BTC may be in sight, but he still expects the leading cryptocurrency to resume its bearish trend.
“Essentially, I could see this bounce up here [$42,000] but a full rejection or losing the level [$39,000], it’s going to go down quickly in my opinion.”
According to Jack, losing the $39,000 level will “crack some bulls up” and accelerate the sell-off to his target at $35,000.
At time of writing, Bitcoin is exchanging hands for $40,193, up 1.26% in the past day.
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.
Featured Image: Shutterstock/Roman3dArt