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.
$BTC.D: If Bitcoin dominance goes down, we see an altcoin run. This would result in btc continuing to range and be healthy; NOT test the 25k levels. If 25k> comes, alts take a -20-50% bath from here. pic.twitter.com/mfaQoeDMvJ
— Altcoin Sherpa (@AltcoinSherpa) May 26, 2023
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.
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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.