The decline in Bitcoin continues to impact the cryptocurrency market. The uneasy environment created by economic statements from the US has been one of the biggest triggers of this process. Additionally, a famous analyst made significant remarks that one of the cryptocurrencies that marked the first quarter of the year is very close to collapsing.
Analyst’s WIF Comments
Altcoin Sherpa, a well-known analyst in the cryptocurrency world, made an important statement about dogwifhat (WIF), the fourth meme coin. In his statement, he noted that despite the significant drop in price, WIF might not have reached the bottom yet and issued a warning.
WIF: generally a good area, I expect a bounce. However, I don’t think this is the overall bottom. There is a strong pullback overall, and I expect it to drop further.
The analyst, in his review, indicated that WIF could rise to $2.50 before a correction to $1.26, which marks the Fibonacci retracement level. Looking back at historical data, WIF was found to have buyers at the $0.148 region on December 20. As of the time of writing, it is trading at the $1.75 region after experiencing a drop of over 13%.
1 Bitcoin to USD
Turning his attention to BTC, the analyst highlighted the daily chart analysis of Bitcoin (BTC), noting that the price movement of the market leader is occurring within a trading range, which could be a process before a trend confirmation.
BTC: keep your charts simple and relax. EQ (equilibrium price) is usually not a point where you would actively want to trade, but let’s see what happens.
After a 1.90% drop in the last 24 hours, Bitcoin is trading at $63,800, causing the market cap to decline to $1.26 trillion.
Solana’s Current Price
Following all this, the analyst also examined a high-volume altcoin, noting that Solana (SOL) experienced a decline similar to the last months of 2020 before a new rally, indicating a parallel process.
I constantly quote this because I think it is extremely relevant today. I believe we are somewhere in the yellow boxes right now. Most alts probably need to go a bit lower, and I expect BTC to be in super healthy condition before alts start moving.
Despite a 4.13% drop in the last 24 hours, Solana continues to stay above $129.
