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Technical Analysis

Altcoins Set to Crash if This Happens, According to Popular Analyst

Altcoins Set to Crash if This Happens, According to Popular Analyst

Altcoin Sherpa, a prominent crypto strategist, shares his insights with a large audience regarding a potential trigger for a significant collapse in the altcoin markets.

In his recent communication to his Twitter followers, Altcoin Sherpa emphasizes the importance of monitoring the Bitcoin (BTC) dominance chart (BTC.D). This chart tracks the percentage of the total crypto market capitalization held by Bitcoin, the leading cryptocurrency.

Altcoin Sherpa explains that if BTC.D respects the resistance level at 48.20%, it could result in rallies within the altcoin markets, while Bitcoin is expected to consolidate during this period. However, he warns of the possibility of altcoins facing substantial losses if BTC.D experiences a breakout due to Bitcoin’s decline toward $25,000.

In addition, Altcoin Sherpa offers insights into the interpretation of bearish and bullish BTC.D charts. A bearish chart indicates that altcoins are gaining value faster than Bitcoin. In contrast, a bullish chart suggests that Bitcoin is rising more quickly than altcoins or that altcoins are losing value relative to Bitcoin.


READ MORE: Current Gold Prices Point to a $45,000 Bitcoin Valuation, According to JPMorgan


Altcoin Sherpa predicts that if BTC falls below the support level of $26,525 on the high timeframe (HTF) chart, Bitcoin is likely to retest the $25,000 level.

He highlights the significance of multiple technical indicators aligning at the $25,000 level, including the 200-week EMA (exponential moving average), 200-day EMA, .382 Fib (Fibonacci retracement level), and range high and S/R (support/resistance) level.

Altcoin Sherpa adds that such situations often result in outcomes that surpass expectations, and he wouldn’t be surprised to witness a decline to around $23,000 or a similar level if this critical area is breached.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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