• A closely followed crypto trader warns that a controversial low-cap altcoin will likely witness more sell-off events.
• The trader predicts Bitcoin will likely retest the $25,000 level before a move to the upside.
• The analyst does not rule out the possibility that Bitcoin could start to form a bearish pattern after a bounce.
Urgent Warning on Controversial Altcoin
Pseudonymous trader Altcoin Sherpa warns that Worldcoin (WLD) remains in a downward trend despite an upward move after retesting the .786 Fibonacci retracement level. He suggests any rally should be shorted and advises those who are already in it to consider selling it and washing their hands clean of this “shitcoin”.
Outlook on Bitcoin Amid Crypto Market Rout
Altcoin Sherpa predicts Bitcoin (BTC) will likely retest the $25,000 level before bouncing up and advises against entering when it is grinding up but rather waiting for it to break down or go back near its lows before longing again. He notes if BTC bears manage to push the crypto king below $25,000, then its macro uptrend will be at risk.
Volatility Expected Over Next Day
The analyst states that due to expected volatility over the next day, traders should be patient with their entries and not rush into them. He reiterates his warning that BTC should not break through $25,000 as this would confirm a lower low.
Worldcoin (WLD) is a project co-founded by OpenAI’s Sam Altman which utilizes iris scanners to verify users’ identities. At time of writing, WLD is trading for $1.51.
Current Price of Bitcoin
Bitcoin is trading for $26,064 at time of writing, up 2.5% in the last 24 hours.