A closely followed crypto analyst warns that Bitcoin’s (BTC) latest pullback could just be a precursor for a deeper correction.
Pseudonymous analyst Altcoin Sherpa tells his 201,100 followers on the social media platform X that Bitcoin could witness another leg down following its abrupt retracement.
On Sunday night, Bitcoin fell to around $40,300 on some exchanges including Binance and Coinbase, triggering a massive liquidation event to the tune of $409.8 million.
While Altcoin Sherpa thinks that the pullback is not yet over, he says that Bitcoin still looks bullish on the higher time frame.
“This could be the ‘test dump’ and price could certainly make another leg down. Best to have some bids lower than you think. The market is still very bullish, not expecting a breakdown (yet)…
Price probably going to eventually grind a bit lower on very low time frames, more information soon. Zoom out, big picture this is minuscule relative to the entire move.”
Altcoin Sherpa also says that it is likely for Bitcoin to consolidate once it carves a local bottom before resuming its uptrend.
“If that happens, then we’re still not dead, but we just cool for one month or so. Kind of expected something like this. Usually, it goes strong move –> one-ish month of cooling –> next leg up. If we dump, then we consolidate, then pump in January in my opinion. Stay safe.”
At time of writing, Bitcoin is trading for $41,706, down over 4% in the last 24 hours.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
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 losses 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.
Generated Image: DALLE3
