Crypto trader CrediBULL Crypto expressed concerns over potential downside risks for Bitcoin BTC/USD and altcoins, citing Dogwifhat WIF/USD as an example.
What Happened: CrediBULL warned of potential downside if Bitcoin revisits its recent lows. He used the Dogwifhat chart as an example, stating that it clearly illustrates the current state of many altcoins.
He noted that many people misinterpret bounces on altcoins and memes as signs of strength, while they are simply higher beta versions of Bitcoin. This means they tend to rise and fall harder in response to Bitcoin’s movements.
He further pointed out that the recent bounce on WIF, although significant, merely moved it back to its range highs, creating a lower high on higher timeframes and taking some liquidity on the way. He also warned about the presence of a triple bottom right below.
Price Action: Over the past 30 days, BTC and WIF are down 1.5% and up 16%
Also Read: Dogecoin, Shiba Inu, Pepe Will Still Have Supercycle But ‘2021 May Never Happen Again,’ Muses Trader
Why It Matters: CrediBULL noted that if Bitcoin makes a 15% move down to its lows, many altcoins will experience much steeper falls. For instance, WIF is likely to follow with a 40% move down to take those triple lows.
This prediction serves as a cautionary note for investors, highlighting the inherent volatility and risk associated with cryptocurrency investments.
He also reiterated his tweet from July 18 where the prediction for Bitcoin he set is at $58,000 as he believes both bullish and bearish scenarios are on the table. He warned traders to avoid "aping into fresh longs here at all this confluent resistance."
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next:
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
