Renowned for his accurate predictions, crypto analyst and trader Altcoin Sherpa has provided a short-term assessment for Bitcoin (BTC) and altcoins. The analyst specifically warned that altcoins could fall in the short term.
Warns of Short-Term Risks for Altcoins
The anonymous crypto analyst Altcoin Sherpa, while continuing to expect a long-term rise, stated on his personal account on social media platform X that the general trend for altcoins is bearish in lower time frames.
Referring to Solana‘s (SOL) competitor Sei‘s (SEI) recent loss of some of its gains, the analyst said:
The overall atmosphere has definitely changed, and you wouldn’t want to blindly long every dip anymore. Altcoins are not being bought as quickly/strongly, and even leaders like SEI are pulling back.
Could we see a green day tomorrow? Absolutely possible. However, the trend seems to be weakening in lower time frames.
Does this mean everything is over? No. I think the higher time frames are still very bullish, but I wouldn’t be surprised to see many of them continue to pull back.
The play here is just to cool off your spot positions at lower levels (hopefully) and add to your spot bags later at lower levels.
If you’re trading with leverage, be cautious and be patient against the crazy volatility that may come with ETF news. Don’t forget not to use too much/high leverage. If you can’t wait, some other altcoins still look good in the short term.
According to the Analyst, Bitcoin Will Retest the $40K Level
After discussing the altcoin market, Altcoin Sherpa turned to Bitcoin‘s (BTC) future, mentioning that some “inefficiencies” or areas with high volatility and potentially weak positions might need to be retested in the near future. The analyst predicts that the $40,000 level will be retested at some point:
Inefficiencies in Bitcoin have mostly been filled on the upside, and there are some downsides to this. We will learn this by experiencing it one day.
