A closely followed crypto strategist is warning that Bitcoin (BTC) may not yet be done correcting.
Pseudonymous analyst Altcoin Sherpa tells his 215,800 followers on the social media platform X that only after Bitcoin reclaims the $60,000 level will he have more confidence a bullish reversal is occurring.
“BTC: don’t think we’re out of the woods at all yet. We still need to reclaim some levels. [May 2nd’s] altcoin action is nice but I would not go all in at these current levels. Wait for BTC to show more strength first and break $60,000+ in my opinion.”
The analyst also says that Bitcoin’s sudden drop below $58,000 this week is similar to other corrections this cycle. He shares a chart of when Bitcoin declined from $47,000 to below $39,000 in January before continuing to the upside.
“BTC: for what it’s worth, this price action is super normal and there’s a lot of volatility while bottoms are formed. Not necessarily saying this is ‘the bottom’ but this is common to see. Expecting more chop/etc. over the next few days. Don’t get chopped to shit.”
Bitcoin is trading for $59,389 at time of writing, up 2.5% in the last 24 hours.
Next up, the analyst says that Ethereum (ETH) competitor Solana (SOL) may correct in the near term to as low as $116 based on his chart of Fibonacci retracement levels, but could rally within months.
“SOL: you just dollar-cast average in and don’t worry about it. wait there to 12 months and then sell it higher.”
Solana is trading for $139.15 at time of writing, up more than 4% in the last 24 hours.
Lastly, the analyst says says that the governance token of the decentralized finance protocol Ethena (ENA) appears likely extend its upward momentum after retesting the Fibonacci retracement level at $0.76.
“ENA: I’m out of this one but I think it looks solid. .618 Fibonacci + support/resistance level and market looking ok.”
Ethena is trading for $0.80 at time of writing, up 1% in the last 24 hours.
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The post Crypto Trader Warns Bitcoin Not ‘Out of the Woods Yet,’ Maps Path Forward for Solana and Ethena appeared first on The Daily Hodl.
