Bitcoin Warning Issued: Bearish Trend Persists Despite $60K Surge

Bitcoin enthusiasts should exercise caution despite the current euphoria surrounding its price action, according to the closely followed crypto analyst, Altcoin Sherpa.

Altcoin Sherpa, with a notable following of 219,000 on X, formerly known as Twitter, warns that Bitcoin (BTC) continues to display bearish patterns on the daily chart. He underscores that while there’s excitement in the air, the formation of lower highs and lower lows cannot be ignored.

Understanding the Bearish Signals

Altcoin Sherpa highlights that BTC is consistently printing bearish patterns on the daily chart. He shares a chart indicating BTC is forming a simple set of lower highs and lower lows, a classic bearish market structure.

“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,” he says.

According to Sherpa, a shift in this pattern, which includes breaking above a higher high than $70,000 and forming a higher low, could indicate a reversal of the bearish trend.

At the time of writing, Bitcoin is trading at $58,459. This price points to an ongoing bearish trend, urging investors to remain cautious despite the optimistic sentiment around Bitcoin’s bounce above $60,000.

Opportunities Amid Bearish Trends

While caution is advised, Altcoin Sherpa suggests that another drop in Bitcoin could open up opportunities for acquiring altcoins at discounted rates. He focuses on Ethereum (ETH) rival Solana (SOL), pinpointing the $125-$138 area as a key zone of interest.

Sherpa describes this range as an ideal point for accumulating more Solana due to a combination of factors, including:

• Resistance to support flip
• 200-day exponential moving average
• Demand zone

“SOL: $125-$138 area seems best area of interest. Would love to buy some more around there,” he explains.

Currently, Solana is trading at $143.44, indicating that prices are still within Sherpa’s recommended buying range for those looking to capitalize on the dip.

Potential in Memecoins

The trader also sees potential in several Solana-based memecoins amid recent corrections. Utilizing Fibonacci retracement levels, Altcoin Sherpa believes buying opportunities exist among midcap-top memes such as 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,” he notes.

Fibonacci retracement levels are widely used by traders to identify potential support and resistance levels based on the specific asset’s previous price movements. Sherpa recommends a strategy of partial investment at these levels, suggesting to “go 1/2 in here” while reserving more funds to buy at lower levels if the market continues to dip.

Final Thoughts

Altcoin Sherpa’s insights provide a balanced perspective amid the prevailing market excitement. His advice to remain cautious with Bitcoin, focus on strategic purchasing of altcoins like Solana, and utilize technical analysis for memecoins could be valuable for both novice and experienced traders.

However, it’s important to remember that investing in cryptocurrencies poses significant risks and requires diligent research and informed decision-making. Following reputable sources and analyst advice can help in navigating the volatile nature of crypto markets.

For more insights and updates on cryptocurrency markets, visit the Daily Hodl. Always ensure to do your own research and assess your risk appetite before committing to any investments.

Disclaimer: This content is not financial advice and is for informational purposes only. The views expressed in this article are those of the analyst and do not necessarily reflect the position of The Daily Hodl. Investing in cryptocurrencies is highly speculative and comes with considerable risk. Seek professional financial advice if needed before making any investment decisions.