Bitcoin's Bounce Hides Underlying Weakness, Trader Warns of Dip to $88K-$90K

Bitcoin's recent rally has sparked concerns among traders, with one prominent analyst warning of underlying weakness despite the cryptocurrency's bounce. In a recent strategy session, pseudonymous crypto trader Crypto Capotellshis, who has 922,500 followers on the social media platform X, suggested that Bitcoin could dip to a price range of $88,000 to $90,000, noting that altcoins could also face a decline.

"Despite the strong market bounce after the capitulation event, there's still some underlying weakness," the trader said. "I've reopened the hedge position until we see proper bullish confirmations or a second dip, which might bring BTC down to around $88,000-$90,000. Some altcoins could drop another 10%-30%, with some forming higher lows and others grabbing liquidity below the wick. Even if this happens, the plan remains the same: hold/buy the dip. An important local bottom should be very close."

The trader's chart appears to indicate that the crypto king will dip and subsequently rise sometime during the summer. Bitcoin is currently trading for $97,982, a 1.2% gain during the last 24 hours.

Moving on to meme assets, the trader said that while they could dip even further, it appears likely that they will recover during the month of February. However, he notes that the majority of them aren't slated to rise to new all-time highs (ATHs).

"Memecoins have retraced 60%-80% on average over the last few weeks (and they could still drop further). Since a local bottom could be forming soon, they might bounce during the rest of February. However, I don't think most of the will reach new ATHs."