A widely followed crypto analyst and trader is warning that an altcoin market bounce may end up being short-lived.
In a new post, pseudonymous crypto trader Altcoin Sherpa tells his 243,900 followers on the social media platform X that alts may give up gains after bouncing based on historical precedence.
He also says Bitcoin (BTC) may soon flip $84,000 into support and that the flagship crypto asset could maintain bullish momentum by breaking through the $89,000 level.
“BTC looks like $84,000 is the first test that is going to break (to the upside) and we’re ok in that department. $89,000 would be my next level of interest overall. Alts looking like they’ll give a temporary bounce but not sure how strong (yet). Be on guard.”
Looking at his chart, the analyst suggests that if Bitcoin can regain $98,703 as support, the flagship crypto asset may print new all-time highs.
However, he warns if $78,167 breaks down as support, Bitcoin may plummet into the $60,000 range.
Bitcoin is trading for $84,154 at time of writing, up 4.6% in the last 24 hours.
The analyst also warns that altcoins like the dogwifhat (WIF) memecoin may struggle for a long time to ever regain higher price targets if Bitcoin turns bearish.
“It’s a lot more concerning for sh**coins this go around because BTC might actually be dead for a bit. In the previous drawdown, we had a lot more hope because we assumed BTC still had more upside. If BTC dies to $50,000 or w/e (whatever), these aren’t coming back for a very long time. See WIF.”
WIF is trading for $0.50 at time of writing, up 9.7% in the last 24 hours.
He adds that altcoins may bounce even as they continue to print a bearish lower-high price structure.
“As much as everything is dead and we’re truly in a bear market for altcoins, it’s important to remember that a bounce will come and alts can still do a few x from current levels. Markets don’t move in a straight line down. Bounce coming within the next one to two months in my opinion.”
He shares the two-day chart of Ethereum (ETH) to illustrate the historical precedence of an altcoin bouncing amid a larger downtrend.
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