Closely followed crypto analyst Altcoin Sherpa is calling for caution amid what he sees as bearish price action for Bitcoin (BTC).
Altcoin Sherpa tells his 219,000 followers on the social media platform X that BTC is continuously printing bearish patterns on the daily chart.
He shares a chart suggesting that BTC is forming a simple set of lower highs and lower lows.
“Even though we have a lot of euphoria on the timeline (and I’m also looking for dips), we have to still remember that BTC is in a one-day bearish market structure.
What would change this? If we break a higher high than $70,000 + get a higher low
Not saying ‘it’s over’ but just be cautious.”
Source: Altcoin Sherpa/X
However, the trader suggests that another drop in Bitcoin could present opportunities to get altcoins at a discount.
Looking at Ethereum (ETH) rival Solana, Altcoin Sherpa says that there’s a potential area of interest at the $125 area for SOL.
“SOL: $125-$138 area seems best area of interest. [Resistance to support flip] + 200-day exponential moving average + demand zone. Would love to buy some more around there.”
Source: Altcoin Sherpa/X
The trader is also eyeing up memecoins for potential entry points.
Using Fibonacci retracement levels, Altcoin Sherpa says that several Solana-based memecoins could be presenting opportunities amid recent corrections, including dogwifhat (WIF), Popcat (POPCAT) and Bonk (BONK).
“If I were actively trading right now, I’d fib out all the midcap-top memes like WIF, Popcat, BONK and others and buy the 0.382 and 0.50 fib. Even stuff like Popcat seems really solid in this consolidation but would leave more ammo for lower. I’d probably go 1/2 in here to be honest.”
Source: Altcoin Sherpa/X
At time of writing, Bitcoin is trading for $58,459, while Solana is worth $143.44.
Generated Image: DALLE3
