Renowned for his accurate predictions, crypto analyst and trader Altcoin Sherpa has issued a short-term assessment for Bitcoin (BTC) and altcoins. He warns that altcoins may see a decline in the near future, despite his long-term bullish outlook.
Altcoin Sherpa, using his personal account on a social media platform, indicated that the general trend for altcoins shows a potential downtrend in lower time frames, even as he remains optimistic about their long-term growth.
Highlighting recent losses of Solana (SOL) and its competitor Sei (SEI), which had shown strength in previous months, the analyst suggested that the market environment has changed. He advised against blindly holding long positions during dips, noting that altcoins are not being bought as aggressively as before, with even leading coins like SEI experiencing pullbacks.
He didn’t rule out the possibility of seeing green days soon but stressed that the trend seems to be weakening in shorter time frames. His strategy involves cooling off spot positions at lower levels and cautiously adding to spot bags later on. For those trading with leverage, he recommended being patient, especially with potential volatility from ETF news, and warned against using high leverage.
Turning to Bitcoin, Altcoin Sherpa mentioned that inefficiencies in BTC have mostly been filled upwards, suggesting a retest of the $40,000 level might be necessary in the near future due to high volatility and potentially weak positions.