A closely followed crypto trader warns that a controversial low-cap altcoin will likely witness more sell-off events despite its recent bounce.
Pseudonymous trader Altcoin Sherpa tells his 196,400 X followers that Worldcoin (WLD) remains in a downward trend despite an upward move after retesting the .786 Fibonacci retracement level.
“WLD: Bounced right at the .786 Fib [$1.24]. Still wouldn’t buy this thing for the long run; any rally should get shorted to oblivion. If you are in this one, consider selling it and washing your hands clean of this shitcoin.”
Worldcoin, a project co-founded by OpenAI’s Sam Altman, utilizes iris scanners to verify users’ identities. WLD is trading for $1.51 at time of writing.
The trader also weighs in on Bitcoin (BTC) after the crypto king abruptly plummeted along with the broader digital assets market.
He predicts Bitcoin will likely retest the $25,000 level before a move to the upside.
“BTC: Wait for price to fill out this inefficiency a bit and test near the lows; somewhere around $25,000. After that, I’m expecting price to bounce truly.”
The analyst also says that Bitcoin may bounce out of the $25,000 range only to retest it later on.
“The other way to play these types of big down moves is to wait for price to retest the lows again and long. So don’t enter right when it’s grinding up, wait for the grind up/ break down/ price going back to near lows.”
The analyst does not rule out the possibility that Bitcoin could start to form a bearish pattern after a bounce.
“If it’s clearly a bearish structure, then you just wait for price to come back near the low/ bounce and then we can comfortably short as it goes higher.”
Altcoin Sherpa highlights that Bitcoin’s macro uptrend will likely be at risk if BTC bears manage to push the crypto king below $25,000.
“BTC: Don’t want to see the $25,000 area get broken. This would confirm a lower low…
Be patient with your entries, in my opinion. Don’t rush in. Volatility expected over the next day.”
Bitcoin is trading for $26,064 at time of writing, up 2.5% in the last 24 hours.
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The post Trader Issues Urgent Warning on Controversial Altcoin, Updates Outlook on Bitcoin Amid Crypto Market Rout appeared first on The Daily Hodl.
