A widely known cryptocurrency trader has warned that Bitcoin (BTC) could suffer a sudden collapse if it loses a key support level.
The trader, who goes by the pseudonym Altcoin Sherpa, told his 239,300 followers on social media platform
He also said Bitcoin could remain weak until the U.S. government decides what to do with the bitcoin it seized from the Silk Road darknet market, after reports emerged this week that it was legally permitted to sell more than 69,000 BTC.
“BTC: Maybe we will see endless TWAP (time weighted average price) for now and no bidders until this stupid government sale is over. If people overleverage, things can get ugly once they lose $90,000 or so. I hope we can absorb it, but I don’t have much confidence. “I wouldn’t be surprised if it goes down to the mid to low $80,000s in some scenarios.”
As of this writing, Bitcoin is trading at $94,776, up 2.8% in the last 24 hours.
The analyst also evaluates Fartcoin (FARTCOIN), a memecoin based on Solana (SOL). He suggested that FARTCOIN could fall more than 28% from its current value based on Fibonacci retracement levels.
“FARTCOIN Market Structure: Still Bearish But I’m Still In It. “If we see the $0.80 and $0.60 areas, I would buy a little more.”
At the time of writing, FARTCOIN is trading at $0.84, down 2.4% in the last 24 hours.
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