Bitcoin’s recent price drop has a popular crypto trader sounding a note of caution. Altcoin Sherpa, a well-known analyst with a large following, shared his concerns about Bitcoin’s current state.
Monthly Chart Shows Weakness
After a 13% dip from its all-time high earlier this month, Bitcoin’s monthly chart isn’t looking great, according to Sherpa. While he’s not predicting a total collapse, he’s advising caution, saying the situation is neutral for now.
Trading Range and Support Levels
Sherpa expects Bitcoin to continue trading between roughly $92,000 and $99,000 in the short term. He warns against opening long or short positions within this range, as it’s likely to be volatile. If Bitcoin fails to hold the $92,000 support level, a drop to the $80,000 range is possible, although he emphasizes that support levels weaken with each retest.
A Possible Scenario: Dip Before the Surge
Despite the bearish outlook, Sherpa outlines a possible scenario where Bitcoin could retest the $86,000 level before rocketing to a new all-time high of $111,000. He suggests this could involve some dramatic price swings, with initial despair followed by a significant price increase and a strong altcoin market. He remains bullish in the long term.
Current Price and Disclaimer
At the time of writing, Bitcoin is trading around $94,368, significantly lower than its all-time high of $108,135 reached on December 17th. Remember, this is just one trader’s opinion, and investing in cryptocurrencies carries significant risk. Always do your own research before making any investment decisions.
