The analyst closely following the crypto market, Altcoin Sherpa, is warning that the recent pullback of Bitcoin (BTC) could be a precursor to a deeper correction.
On social media platform X, Altcoin Sherpa suggested that after Bitcoin’s sudden pullback, another drop could occur. On Sunday night, Bitcoin fell to around $40,300 on several cryptocurrency exchanges such as Binance and Coinbase, triggering a significant liquidation event of $409.8 million.
According to the analyst, the leading cryptocurrency’s pullback is not over yet, and he points out that Bitcoin is still in an uptrend on higher time frames. Altcoin Sherpa indicates that the price could fall again and that the market remains quite bullish.
Sherpa, who says it’s likely that Bitcoin will consolidate after forming a local bottom and continue its uptrend, mentions that there is typically a calming period lasting about a month after a strong move, and he expects an upward movement in January.
At the time the article was written, Bitcoin was trading at the level of $41,706, experiencing a drop of over 4% in the last 24 hours.