Bitcoin Witnesses Abrupt Retracement
A highly regarded crypto analyst, known as Altcoin Sherpa, has raised concerns about Bitcoin’s recent pullback, suggesting that it may be an indication of a more significant correction on the horizon. With a substantial following of 201,100 on the social media platform X, Altcoin Sherpa warns that there could be further downside for Bitcoin, following its sudden retracement.
Massive Liquidation Event Triggered by Sunday Night’s Drop
During Sunday night’s market volatility, Bitcoin tumbled to approximately $40,300 on popular exchanges like Binance and Coinbase. This steep decline led to a significant liquidation event, resulting in losses amounting to an astonishing $409.8 million.
Bitcoin’s Bullish Outlook on the Higher Time Frame
Despite the ongoing pullback, Altcoin Sherpa believes that Bitcoin still exhibits a bullish outlook when analyzed on higher time frames. He suggests that this recent retracement might just be a “test dump,” and cautions that Bitcoin could potentially experience another leg down in the near future. In his opinion, it is probable that Bitcoin’s price would gradually decline over the short term.
Consolidation and Potential for a January Pump
Altcoin Sherpa further adds that in the event of a dump, Bitcoin would likely consolidate before seeing an eventual pump in January. He suggests that the typical market pattern involves a strong upward movement, followed by a cooling-off period of approximately one month, before the next leg up.
At the time of writing, Bitcoin is currently trading at $41,706, reflecting a decline of over 4% in the past 24 hours.
It is of utmost importance for investors to exercise caution and conduct thorough research before engaging in high-risk investments, such as Bitcoin, cryptocurrencies, or digital assets. Transfers and trades in these markets carry inherent risks, and any losses incurred are solely the responsibility of the investor.