Ethereum 
$2,317 is currently struggling to maintain its position at $3,600, while Bitcoin 
$77,710 stands at $117,800. As the European Union prepares for a retaliatory vote against ongoing extended negotiations with the US, the possibility of further decline in the cryptocurrency market becomes apparent, especially for Thursday. This situation raises concerns over how much altcoins might drop according to market analysts.
Potential Altcoin Drop
According to trade advisor Navarro, the rumors of an EU agreement should be approached with skepticism. Consequently, the EU could approve sanctions and announce their implementation at a later date, which might not bode well for cryptocurrencies. For altcoins, analyst Altcoin Sherpa predicts BTC retreating to around $116,000 could lead to altcoin losses ranging between 10-20%. XRP Coin and several other altcoins have already experienced losses close to 10%.
Altcoin Sherpa advises caution, proposing that if BTC tests the $116,000 level, altcoins might drop an additional 10-20% from current levels. He stresses the importance of strategic positioning rather than all-in moves, pointing to the possibility of recovery. Care is crucial in navigating these turbulent market conditions.
The possibility of ETH testing $3,400 and losing this support could aggravate the situation. Unlike previous corrections, BTC corrections might heavily impact altcoins. To safeguard gains, some investors have been selling, as warned by market analyst Kyle earlier in the week.
Evaluating Bitcoin’s Peak Potential
Is it plausible to expect a Bitcoin peak similar to 2017 and 2021? Kyle provides insights into the depth of the potential decline. Despite Bitcoin reaching $120,000, the Bitcoin Flow Wave is declining, contrasting with the flow increases before major sell-offs observed during the 2017 and 2021 peaks. Significant players are retaining rather than offloading BTC on exchanges, suggesting a holding pattern but caution remains essential should IFP unexpectedly surge.
Therefore, discussing a deep decline or entry into a bear market seems premature.
TraderLeevis, on July 16th, warned of a decline for the popular DeFi altcoin AAVE. It is common for bearish forecasts to be disregarded during market surges, yet acknowledging such analyses during peak risk and FOMO could benefit investors. In the event the analyst is accurate, AAVE might test the $275 level.
During bullish periods, bearish analyses receive less attention. However, during peak risk and FOMO, investors must heed these analyses. – TraderLeevis
