A closely watched crypto analyst is warning that Bitcoin’s (BTC) latest pullback could be a harbinger of a deeper correction.
Pseudonymous analyst Altcoin Sherpa tells his 201,100 followers on social media platform X that Bitcoin could witness another step backward after the abrupt retracement.
On Sunday evening, Bitcoin fell to around $40,300 on some exchanges, including Binance and Coinbase, leading to a massive liquidation of $409.8 million.
While Altcoin Sherpa thinks the pullback isn’t over yet say that Bitcoin still looks bullish on the higher time frame.
“This could be the ‘test dump’ and the price could certainly go a step further. It’s best to have some bids lower than you think. The market is still very optimistic and does not expect a collapse (yet)…
The price will likely eventually move slightly lower on very short time frames, more information soon. Zoom out, the big picture is minuscule in relation to the entire move.”
Altcoin Sherpa also says it is likely Bitcoin will consolidate once it reaches a local bottom before resuming its uptrend.
“If that happens, we’re still not dead, we’ll just cool off for a month or so. Was actually expecting something like this. Usually it goes strong –> cool down for a month –> next stage up. If we dump, we consolidate and pump in January in my opinion. Pay attention to your safety.”
At the time of writing, Bitcoin is trading at $41,706, down over 4% in the past 24 hours.
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