A closely-followed crypto strategist thinks altcoins appear poised for another deep correction.
The crypto analyst known by the alias Rekt said that the failure of Bitcoin (BTC) to break the critical resistance at $ 17,150 does not bode well for the entire crypto market. told.
“New BTC bottoms are possible, especially if around $17,150 continues to act as resistance. Therefore, a drop of up to 20% to around $13,900 is not impossible.
A 20% drop for BTC will definitely negatively impact altcoins and cause them to drop more than 20%.”
According to Rekt, historical bear market data suggests altcoins face further downside risk, especially if Bitcoin continues to show signs of weakness.
“Many altcoins have not returned to the typical -90% to -99% levels in this current bear market. History shows that this drop is still likely, especially if the around $17,150 level for BTC continues to act as resistance.”
At press time, the largest crypto Bitcoin is trading at $16,870, up 2.80% on the day.
Exclusively reviewing the leading altcoin Ethereum, Rekt said that ETH will likely continue its downtrend after turning a critical support level into resistance. says.
“This December, ETH failed to recover quarterly support. In fact, the same old quarterly support acts as a new resistance. If ETH does indeed close below around $1,300 per month, then much lower prices can be expected in the new year.”
Leading altcoin ETH is trading at $1,214, up 3.60% in the last 24 hours.
As for Cardano (ADA), Rekt does not allow its Ethereum rival to reverse its downtrend anytime soon.
“ADA has tracked -91% in this BTC bear market. There will be more negativity down there as there has been no major support for a while.” At the time of writing, ADA is trading at $0.289, up 2% compared to the previous day.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.