In recent days, the cryptocurrency market has been shaken, especially by the sudden withdrawal experienced by Bitcoin. On Sunday night, Bitcoin value dropped to as low as $40,300 on major exchanges such as Binance and Coinbase, causing a massive liquidation of $409.8 million. Following these developments, Altcoin Sherpa, a pseudonymous analyst with 201,100 followers on the social media platform X, warned investors to be careful.
Altcoin Sherpa stated that after this sudden withdrawal of Bitcoin, the cryptocurrency market may be pregnant with further decline. The analyst advised investors to be careful in the coming days and to follow the developments in the market closely.
Besides these, Altcoin Sherpa thinks that Bitcoin is still in an uptrend on higher time frames and encourages investors not to panic.
Altcoin Sherpa to the analysis The pullback may not be completely over yet, but Bitcoin’s underlying trend is still positive. The analyst advises investors to understand the volatility of crypto assets and be prepared for short-term fluctuations. In this process, investors’ careful monitoring of the market and up-to-date news can play an important role.
“This could be a ‘test drop’ and the price could definitely cause another drop. It’s best if some bids are lower than you think. The market is still very bullish, we don’t expect a crash (yet)…
The price will likely drop a little further on the lower time frames, more information coming soon. “Zoom out the chart, that’s the big picture, (the decline) is very small compared to the whole move.”
NEWS CONTINUES BELOW
Altcoin Sherpa also adds that Bitcoin is likely to consolidate after forming a local bottom before resuming its uptrend.
“If that happens, then we’re still not dead, but we’ll only be quiet for a month or so. Something like this was expected. Usually there is a strong move -> a month of cooldown -> the next step. “I think if there is a sudden drop, there will be consolidation, then we will rise in January.”
At press time, Bitcoin is trading at $41,795.
You can follow the current price movement here.