A popular analyst is predicting if and when three cryptos can break out of the lingering market downtrend to achieve a short-term rally.
Pseudonymous crypto trader Altcoin Sherpa tells his 180,000 Twitter followers he’s not encouraged by altcoins on their one-hour to daily high time frame [HTF] charts but thinks there could be temporary upside potential for certain projects.
Sherpa thinks both Cosmos (ATOM) and layer-1 scaling solution NEAR Protocol (NEAR) can do well.
“The HTF market structure is still incredibly bearish for many altcoins but if we see a bit more chop/grinding + these bottom type of patterns playing out, I think we’ll see a short-term move up.
Some potential double bottoms/[cup and handle]/etc. type of charts out there for now.”
At time of writing, Cosmos is up by 4.33% over the last 24 hours and trading for $9.06.
Next Altcoin Sherpa provides a look at Ethereum (ETH) competitor NEAR.
NEAR Protocol is down just shy of 2% on the day with an asking price of $3.44.
Moving on to the largest crypto asset by market cap Bitcoin (BTC), Altcoin Sherpa says that despite Bitcoin’s six-month-plus downward trajectory, he foresees another BTC rally mirroring its rise in late March and early April.
“Every single consolidation has resulted in a breakdown on high-time-frame charts. Is this time going to be the same?
There’s going to be another bear-market rally similar to March/April 2022; I don’t know when/where it’ll happen though (or how high).”
The analyst then tells his 10,300 YouTube subscribers he thinks it’s possible Bitcoin could rally as high as $30,000 during the next upswing.
“You’re really looking for potentially a bear market rally where price is going to potentially rally harder than you think.
It could look like a move all the way up to $30,000. I don’t know if it has the strength to get up there, but it is a scenario that I’m viewing.”
Altcoin Sherpa concludes his remarks by pinpointing $12,000 as a potential bear cycle low for Bitcoin, before adding that BTC’s price might ultimately be determined by the equities markets rather than its merits or demand alone.
“This last kind of bearish retest that we saw in late March, that was kind of the last real bearish retest that we saw. Everything else has just been consolidation, breakdown, consolidation, breakdown. Now we’re at consolidation.
We certainly could just see another breakdown to $12,000 or wherever. But there is going to be another bear market rally, I don’t know what it’s going to look like or how strong it’s going to be, but as I said it’s really going to largely depend on equities, in my opinion.
That’s really just the nature of it, unfortunately.”
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