A popular crypto analyst, Altcoin Sherpa, is cautioning investors about a potential short-lived altcoin rebound. He believes that any gains might be temporary, based on past market behavior.
Bitcoin’s Price Targets
Sherpa’s analysis focuses on Bitcoin (BTC) as a key indicator. He suggests that if BTC can break through $89,000, it could signal continued bullish momentum. A successful test of $84,000 as support would be a positive sign. Conversely, a break below $78,167 support could send Bitcoin plummeting towards $60,000. Reaching $98,703 in support, however, could potentially lead to new all-time highs. At the time of writing, Bitcoin was trading at $84,154, up 4.6% in the last 24 hours.
Altcoin Outlook: Proceed with Caution
Sherpa expresses significant concern about altcoins, particularly memecoins like Dogelon Mars (WIF), if Bitcoin experiences a prolonged downturn. He warns that if Bitcoin falls significantly (e.g., to $50,000), some altcoins may take a very long time to recover. WIF, currently trading at $0.50 (up 9.7% in the last 24 hours), serves as an example of this potential risk.
Temporary Bounce Expected, But Stay Alert
Despite the bearish outlook, Sherpa anticipates a temporary altcoin bounce within the next one to two months. He emphasizes that markets don’t move linearly and that altcoins could still see some gains from current levels, even within a broader bearish trend. He uses Ethereum (ETH) as an example, showing a historical instance of an altcoin bounce during a larger downtrend. However, he urges caution, advising investors to “be on guard.”
