Altcoins surged last week, following Bitcoin’s (BTC) leadership in what some analysts are calling “the biggest crypto bull run ever.” However, a cryptocurrency trading expert warns of caution as all cryptocurrencies could soon start bleeding before “sending them much higher.”
In the past seven days, US-based altcoin projects like Ripple’s XRP, IOHK’s Cardano (ADA), and Algorand’s (ALGO) got the spotlight. XRP, for example, surged by over 83% in a week, as Finbold reported, breaking the $1 mark and eyeing $8.
Yet, CrypNuevo believes this bull rally could soon face resistance and bleed into a “shallow pullback” in the following days. The analyst shared this projection on November 14, looking at BTC psychological levels and TradingView’s Bitcoin Dominance Index (BTC.D).
Picks for you
Moreover, the S&P 500 6,000 psychological level may also play a key role in this scenario, pulling everything down in a long overdue market correction.
Bitcoin (BTC) price prediction
The analysis started with a Bitcoin price prediction made of a move up, followed by a pullback to $83,000. “Not necessarily what I think it’ll happen,” CrypNuevo explained, “but just what would give me the most trade triggers.”
According to the expert, a run to $95,000-$96,000 would trigger a short opportunity against retail, expecting BTC to reach the long-awaited $100,000 psychological level. Essentially, this region would act as a bull trap, creating enough liquidity to the downside with long liquidations.
The long squeeze, however, would likely bounce up again once market makers were done with the retracement.
Altcoins: Bleed before sending “much higher”
Interestingly, the analyst has been warning of an incoming altseason for a while, looking at the BTC.D index. This idea remains valid as Bitcoin’s dominance now hovers in CrypNuevo’s key range between 60% and 62%.
In case BTC plays out as projected above, altcoins would likely follow, in his opinion, although for a “shallow pullback.” Notably, this would create a “great opportunity,” in his words, as the altseason would finally start after this short bleed.
“Then we could see alts continue to bleed – but at this pace (!) a shallow pullback rather than a deep one – presenting a great opportunity before sending them much higher.”
– CrypNuevo
It is important to note, though, that even professional traders and prominent analysts like CrypNuevo can be wrong. These analyses do not guarantee the market will behave as expected. Instead, they simply offer valuable insights for traders and investors to consider during their own studies.
Featured image from Shutterstock.
