Analyst Issues Warning on Crypto Market, Says Massive Downturn Incoming for ‘99% of Altcoins’ – Here’s His Outlook
A widely followed crypto analyst is issuing a warning, telling traders that the overwhelming majority of altcoins will soon be seeing red.
In a new thread, pseudonymous crypto trader Altcoin Sherpa tells his 255,400 followers on X that 99% of altcoins will soon see a downturn followed by a weeks-long period of consolidation, ultimately culminating in a massive swing to the upside sometime in December or January.
However, the trader notes that his theory would be invalidated if Bitcoin ( BTC ) breaks the $120,000 level and continues to push on with strength.
“-Downtrend followed by chop for 99% of altcoins and then full ripping in December/January.
-Majors and coins w/ DAT (digital asset treasury) flows hold up okay, the rest of the market pulls back in the short/mid term.
-99% of alts will continue pulling back for the next few weeks and this will be followed by a few weeks of consolidation.
-Not all hope is lost; I think December/January is going to be very good for the market.
-Invalidation of this idea would be BTC cleanly breaking $120,000 and pushing much higher (w/ strength). In that case, it’s totally game on.”
The trader goes on to note how specific types of altcoins would recover from such a scenario if it were to happen.
According to Sherpa, altcoins that have been downtrending longer – such as the meme asset Fartcoin ( FARTCOIN ) and PENGU , the native asset of the Pudgy Penguins non-fungible token (NFT) collection – will be the first to recover while recent runners will have weaker bounce backs.
Furthermore, he notes that big market cap meme assets will likely fare better than fundamental digital assets as the market made a run on those earlier this year.
Bitcoin is trading for $111,497 at time of writing, a 2% decrease during the last 24 hours.
Featured Image: Shutterstock/prodigital art/Natalia Siiatovskaia
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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