A popular analyst is digging into the charts to set low-end price targets for the two largest crypto assets by market cap.
Pseudonymous crypto trader Altcoin Sherpa tells his 179,500 Twitter followers he’s watching leading smart contract platform Ethereum (ETH) at around $975 to $1,425 while warning that further capitulation could send it tumbling to $600.
“This area remains a high-demand zone area and if we fall out here, $600 is probably the next area up.”
At time of writing, Ethereum is down more than 4% over the last 24 hours, trading for $1,148.
Looking at Bitcoin (BTC), Altcoin Sherpa tells his 10,200 YouTube subscribers he’s eyeing $16,000 to $20,000 as a potential support zone as BTC tries to recover from a month where it’s lost about one-third of its value.
“Whether this is going to continue to remain kind of the so-called bottom remains to be seen, but if this is the bottom, this kind of $16,000 to $20,000 area, then we’re going to see a lot of ranging around this area.
Bottoms usually take a long time to form, and… Basically, I expect it to have a lot of volatility and then kind of range for quite some time, weeks and months, before finding a bottom.”
The analyst remains cautious about predicting a bear cycle bottom, noting two previous instances that were punctuated by dramatic volatility downward.
“I’m not saying this is necessarily the bottom. Usually for absolute bottoms to form, you want to see some sort of nasty capitulation wick. Back in 2018, that was obviously the $6,000 level where price fell through [from] $6,000 to $3,000.
And then obviously the Covid crash in March of 2020. This was obviously a really nasty situation as well, where price just dumped bad and then a v-shaped reverse. But the v-shape reversal is fairly uncommon for Bitcoin and I think that it’s much more likely that Bitcoin has a long, ranging price action over several months when the bottom is found.
I don’t know where this is going to be bottoming out at. $16,000 to $20,000 is my hope, but I can’t really say where the bottom’s going to be.”
Bitcoin is currently down by 2.6% on the day, changing hands for $20,297.
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