Crypto analyst and market strategist Alex Saunders warned traders to begin preparing for a massive market correction.
In a recent YouTube update, Saunders told followers he is preparing for a sudden market dip by selling some of his positions. Despite being bullish on the long-term outlook for cryptocurrency, Saunders warned investors to begin taking profits in order to lock their short-term gains.
He said,
I just think that we need a pretty big washout considering everything that I’m seeing on the charts. Just the attitudes of people, the sentiment.
Saunders said the majority of investors were failing to realize how quickly prices have risen for bitcoin and altcoins. He predicted “smart money” early investors would begin taking profits, particularly in small-cap projects that have made 10 – 100x gains over the last several months.
Saunders dismissed the reliance upon retail investors, questioning whether the impact of small investors would be enough to influence prices. Instead, he said this market cycle was being driven by institutional money and that retail investors were likely coming in at the tail end of the bubble.
He explained,
When I continually hear people on Twitter saying retail has just arrived that’s one of the reasons why we’re going far higher… this cycle is already different.
Saunders concluded by saying there was “no way” retail investors would be able to push the market cap up by several billion and that most of the big gains this cycle had been generated by financial institutions.
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