A closely followed crypto strategist and trader says that altcoins look primed for another deep corrective move.
Pseudonymous analyst Rekt tells his 329,700 Twitter followers that Bitcoin’s (BTC) inability to take out its immediate resistance at $17,150 does not bode well for the entire crypto market.
“New BTC lows could be on the cards, especially if ~$17,150 continues to act as resistance.
Therefore, a drop of up to -20% to ~$13,900 wouldn’t be out of the question.
A -20% drop for BTC would surely negatively impact altcoins and make them drop more than -20%.”
According to Rekt, historical bear market data suggests that altcoins still face more downside risk, especially if Bitcoin continues to flash signs of weakness.
“Many altcoins haven’t retraced the typical -90% to -99% in this current bear market.
History suggests there is a good chance they still will, especially if the ~$17,150 level for BTC continues to act as resistance.”
At time of writing, Bitcoin is switching hands for $16,870, up 2.80% on the day.
Looking at Ethereum, Rekt says that ETH will likely continue to trend lower after converting a critical support level into resistance.
“This December, ETH has failed to reclaim a three-month support.
In fact, this same old three-month support is acting as new resistance.
If ETH indeed monthly closes below ~$1,300, then much lower prices likely await in the new year.”
At time of writing, ETH is changing hands for $1,214, a 3.60% increase in the last 24 hours.
As for Cardano (ADA), Rekt says he does not see the Ethereum rival reversing its downtrend anytime soon.
“ADA has retraced -91% in this BTC bear market.
Still more downside to come as there is no major support below for a while.”
At time of writing, ADA is trading at $0.289, up 2% in the past day.
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