Crypto Trader Warns Bitcoin Correction Could Be a ‘Test Dump,’ Says BTC May Witness Slow Grind Down

A carefully adopted crypto analyst warns that Bitcoin’s (BTC) newest pullback might simply be a precursor for a deeper correction.

Pseudonymous analyst Altcoin Sherpa tells his 201,100 followers on the social media platform X that Bitcoin might witness one other leg down following its abrupt retracement.

On Sunday night time, Bitcoin fell to round $40,300 on some exchanges together with Binance and Coinbase, triggering an enormous liquidation occasion to the tune of $409.8 million.

Whereas Altcoin Sherpa thinks that the pullback isn’t but over, he says that Bitcoin nonetheless appears bullish on the upper time-frame.

“This could possibly be the ‘check dump’ and value might actually make one other leg down. Greatest to have some bids decrease than you suppose. The market continues to be very bullish, not anticipating a breakdown (but)… 

Value in all probability going to ultimately grind a bit decrease on very low time frames, extra data quickly. Zoom out, massive image that is minuscule relative to the whole transfer.”

Altcoin Sherpa additionally says that it’s doubtless for Bitcoin to consolidate as soon as it carves an area backside earlier than resuming its uptrend.

“If that occurs, then we’re nonetheless not lifeless, however we simply cool for one month or so. Type of anticipated one thing like this. Normally, it goes robust transfer –> one-ish month of cooling –> subsequent leg up. If we dump, then we consolidate, then pump in January in my view. Keep secure.”

At time of writing, Bitcoin is buying and selling for $41,706, down over 4% within the final 24 hours.

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