A closely watched analyst believes digital assets still have more room to rise to the upside, despite calls that crypto may be in the midst of a cycle top.
Pseudonymous trader Altcoin Sherpa tells his 240,200 followers on social media platform
He also emphasizes that Bitcoin is one strong candle away from printing a new record just as countries and US states are considering the possibility of creating a strategic BTC reserve.
From a technical analysis perspective, Altcoin Sherpa says Bitcoin has been consolidating above $90,000 for months and is only just starting to show signs of expansion. Meanwhile, he adds that altcoins, especially the old ones, have been witnessing time-based capitulation for years, suggesting they are likely to trigger at least one run before the cycle is over.
The analyst also notes that the first quarter is typically a bullish season for crypto based on historical data.
Sentimentally speaking, Altcoin Sherpa says he doesn’t think crypto has reached its peak mania and there are still no signs of overexuberance that typically mark the end of a bull market.
“All in all, I think we’re closer to… this isn’t the top personally. I think we still have a few months of good times left and probably one to three good pumps left.”
Although Altcoin Sherpa believes the bull run is not over yet, he thinks say we are no longer in the early innings of the cycle and it is better to be defensive at this stage. He notes that crypto bears also have good reason to believe the cycle is over included the lack of clear narratives and Bitcoin’s reluctance to unleash strong rallies above $100,000.
At the time of writing, Bitcoin is trading at $105,836.
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Generated image: Midjourney