A widely followed cryptocurrency trader is warning that Bitcoin (BTC) may suddenly collapse if it loses a key support level.
The trader pseudonymously known as Altcoin Sherpa tells his 239,300 followers on the social media platform X that if Bitcoin loses $90,000 as support, the flagship crypto may plummet all the way down to the low $80,000 range.
He also says that Bitcoin may remain bearish until the US government decides what it will do with the seized Bitcoin from the Silk Road darknet marketplace after reports this week that it was legally cleared to sell over 69,000 BTC.
“BTC: maybe we’re going to just see an endless TWAP (Time-Weighted Average Price) sell for now and no bidders until this stupid government sell-off is over. If people get over-levered, then it could get ugly if we lose $90,000 or so. Hoping we can absorb it but not feeling super confident. Wouldn’t be super surprised If we wick down to mid, low $80,000s in some scenarios.”
Bitcoin is trading for $94,776 at time of writing, up 2.8% in the last 24 hours.
The analyst also weighs in on Solana (SOL)-based memecoin Fartcoin (FARTCOIN). He suggests FARTCOIN may decline more than 28% from its current value based on Fibonacci retracement levels.
“FARTCOIN market structure: still bearish on it but I’m still in it. Looking to buy a bit more at the $0.80 and $0.60 regions if they come.”
FARTCOIN is trading for $0.84 at time of writing, down 2.4% in the last 24 hours.
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