Altcoin Market Bounce May Be Short-Lived, Analyst Warns

A prominent crypto analyst and trader has issued a cautionary note regarding the recent bounce in the altcoin market, suggesting that it may be short-lived. The trader, known by the pseudonym Altcoin Sherpa, shared insights with his 243,900 followers on the social media platform X, indicating that historical patterns suggest altcoins may relinquish their gains after a temporary rebound.

Altcoin Sherpa also provided predictions for Bitcoin (BTC), stating that the cryptocurrency may soon convert $84,000 into a support level. He further noted that if Bitcoin can break through the $89,000 mark, it could maintain its bullish momentum. The analyst's chart analysis suggests that if Bitcoin can regain $98,703 as support, it may reach new all-time highs. Conversely, if $78,167 fails as support, Bitcoin could drop into the $60,000 range.

At the time of writing, Bitcoin was trading at $84,154, reflecting a 4.6% increase over the past 24 hours. The analyst also expressed concern about the future of certain altcoins, such as the dogwifhat (WIF) memecoin, which may struggle to regain higher price targets if Bitcoin turns bearish. WIF was trading at $0.50, up 9.7% in the last 24 hours.

Altcoin Sherpa emphasized that while the altcoin market may be in a bearish phase, a bounce is still likely within the next one to two months. He illustrated this point with a two-day chart of Ethereum (ETH), showing historical instances where altcoins bounced amid a larger downtrend. Despite the bearish lower-high price structure, altcoins could still see significant gains from current levels, as markets do not move in a straight line down.