Widely followed crypto trader Altcoin Sherpa is warning that the recent strength in digital asset markets is due for a break.
The pseudonymous analyst tells his 204,000 followers on the social media platform
He points to Solana (SOL) challenger SEI, one of the strongest altcoins in recent months, which has given up some of its gains in recent days.
“The overall environment has definitely changed a bit so that you no longer want to blindly crave every dip. Altcoins are not being bought as quickly/strongly as before and even leaders like SEI are retreating.
Could we see a green day tomorrow? Absolute. But the trend seems to be fading a bit on lower time frames.
Does this mean it’s all over? No. High timeframes are still very bullish IMO (in my opinion). But I wouldn’t be surprised if many of these companies continue to pull back.
The game here is just to cool your spot positions from lower down (I hope) and add to your spot pockets later at lower levels.
If trading with leverage, I would be cautious and probably just patient with the crazy volatility that comes with ETF (exchange-traded fund) news. Remember not to use too big/high leverage.
If you can’t stay patient, some other coins still look good in the short term.”
Looking at Bitcoin (BTC), Altcoin Sherpa says certain “inefficiencies,” or areas of high volatility and likely weak holdings, may need to be retested in the near future. He’s aiming roughly at the $40,000 level.
“BTC: inefficiency largely filled upwards…
What about the disadvantage?
Scary things.”
At the time of writing, Bitcoin is trading at $43,940.
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Generated image: Midjourney