Crypto Trader Warns Bitcoin Correction Could Be a ‘Test Dump,’ Says BTC May Witness Slow Grind Down

By The Daily Hodl December 12, 2023 In Bitcoin

A closely followed crypto analyst warns that Bitcoin’s (BTC) latest pullback could just be a precursor for a deeper correction.

Pseudonymous analyst Altcoin Sherpa tells his 201,100 followers on the social media platform X that Bitcoin could witness another leg down following its abrupt retracement.

On Sunday night, Bitcoin fell to around $40,300 on some exchanges including Binance and Coinbase, triggering a massive liquidation event to the tune of $409.8 million.

While Altcoin Sherpa thinks that the pullback is not yet over, he says that Bitcoin still looks bullish on the higher time frame.

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“This could be the ‘test dump’ and price could certainly make another leg down. Best to have some bids lower than you think. The market is still very bullish, not expecting a breakdown (yet)…

Price probably going to eventually grind a bit lower on very low time frames, more information soon. Zoom out, big picture this is minuscule relative to the entire move.”

Altcoin Sherpa also says that it is likely for Bitcoin to consolidate once it carves a local bottom before resuming its uptrend.

“If that happens, then we’re still not dead, but we just cool for one month or so. Kind of expected something like this. Usually, it goes strong move –> one-ish month of cooling –> next leg up. If we dump, then we consolidate, then pump in January in my opinion. Stay safe.”

At time of writing, Bitcoin is trading for $41,706, down over 4% in the last 24 hours.

Generated Image: DALLE3

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