Widely followed crypto trader Altcoin Sherpa is warning that the recent strength in digital asset markets is due for a break.
The pseudonymous analyst tells his 204,000 followers on the social media platform X that while he remains long-term bullish, the overall trend for altcoins is starting to shift bearish on lower timeframes.
He references Solana (SOL) challenger SEI, one of the strongest altcoins of the past several months, giving up some of its gains in recent days.
“Overall environment has definitely changed a little bit to where you aren’t going to want to long every single dip blindly. Altcoins aren’t getting bought up nearly as fast/strongly as before and even leaders like SEI are pulling back.
Could we see a green day tomorrow? Absolutely. But the trend seems to fading a bit on lower time frames.
Does this mean it’s all over? No. High time frames are still very bullish IMO (in my opinion). But I wouldn’t be surprised to see many of these continue pulling back.
The play here is just to chill in your spot positions from lower (I hope) and add to your spot bags later on at lower levels.
If trading leverage, I’d be cautious and probably just be patient with the crazy volatility that’s going to come with ETF (exchange-traded fund) news. Remember not to go too big/high leverage.
If you cannot stay patient, some other coins still look ok in the short term.”
Looking at Bitcoin (BTC), Altcoin Sherpa says that some “inefficiency,” or areas with high volatility and likely weakly held positions, may need to be retested in the near future. He targets roughly the $40,000 level.
“BTC: inefficiency mostly filled out to the upside…
What about the downside?
Scary stuff.”
At time of writing, Bitcoin is trading at $43,940.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: Midjourney
