The closely followed crypto market analyst known as Altcoin Sherpa warns that the recent pullback of Bitcoin (BTC) could be a precursor to a deeper correction.
“BTC’s Decline Could Deepen!”
The crypto analyst, known by the pseudonym Altcoin Sherpa, suggested on social media platform X that after Bitcoin’s sudden pullback, we may witness another decline. On Sunday night, Bitcoin dropped to approximately $40,300 on several cryptocurrency exchanges, including Binance and Coinbase, triggering a massive liquidation event worth $409.8 million.
Altcoin Sherpa emphasized that he believes the retreat in the leading cryptocurrency is not over yet, claiming that Bitcoin is still on an uptrend in higher time frames. The analyst stated the following in his comments:
This could be a retest, and the price could definitely cause another drop. It’s best to have some of your bids lower than you might think. The market is still quite bullish, we don’t expect a crash yet… The price will likely drop a bit more in very low timeframes, more information will come soon. Zoom out, this is the big picture, it’s very small compared to the entire movement.
Bitcoin’s Consolidation Phase
Altcoin Sherpa also mentioned that it is likely for Bitcoin to consolidate after forming a local bottom before continuing its upward trend, stating the following in his explanations:
If this happens, then we are not dead yet, but we would remain calm for only about a month. This was to be expected. Usually, there is a strong move, a one-month cooldown, then the next step. I think if we dump, we will consolidate, then move up in January. Stay safe.
At the time the article was written, Bitcoin was trading at $41,706, down over 4% in the last 24 hours.
