A cryptocurrency strategist who follows closely believes one hot altcoin project is on the verge of collapse.
pseudonymous analyst Altcoin Sherpa told his 217,600 followers on social media platform X that dogwifhat (WIF) may not have found a market bottom yet.
“WIF: Overall a good region and a rebound is expected. But I don’t think this is the overall bottom. “Overall, a strong retracement is expected and we expect it to move lower.”
Looking at his chart, the analyst suggests that WIF could bounce to around $2.50 and then fall to the Fibonacci retracement level of $1.26.
WIF was trading at $0.148 on December 20 and is worth $2.01 at the time of this writing, a gain of 1,258%.
Next, the analyst says that Bitcoin (BTC)’s price action on the daily chart is hovering in the middle of its trading range, awaiting confirmation of the trend.
“BTC: Keep the charts simple and take a break. The EQ (equilibrium price) is generally not a point you want to trade actively, but let’s see what happens.”
Bitcoin is trading at $64,922 at the time of writing and has risen slightly over the past 24 hours.
The analyst also suggests that today’s cryptocurrency market is similar to the cryptocurrency cycle of late 2020, when altcoins, including Solana (SOL), fell further before launching a massive rally.
“I keep quoting this thread because I think it is very relevant today. I think we’re somewhere in the yellow box right now. Most alts will probably have a little more downside and I would rather wait for BTC to be in a very healthy state before the alts start making moves.”
Solana is trading at $133 at the time of this writing, down more than 2% in the last 24 hours.
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