According to Finbold, altcoins experienced a significant surge last week, following Bitcoin's lead in what some analysts are describing as a major crypto bull run. However, a cryptocurrency trading expert has advised caution, suggesting that all cryptocurrencies might soon experience a downturn before potentially rising again. Over the past week, US-based altcoin projects such as Ripple's XRP, IOHK's Cardano (ADA), and Algorand's (ALGO) have gained attention. XRP, for instance, increased by over 83% in a week, surpassing the $1 mark and aiming for $8. Despite this, CrypNuevo, a cryptocurrency analyst, predicts that this bullish rally could encounter resistance, leading to a "shallow pullback" in the coming days. This projection was shared on November 14, with a focus on Bitcoin's psychological levels and TradingView's Bitcoin Dominance Index (BTC.D). Additionally, the S&P 500's 6,000 psychological level might also influence this scenario, potentially leading to a market correction.
The analysis began with a Bitcoin price prediction involving an upward move followed by a pullback to $83,000. CrypNuevo clarified that this is not necessarily what he expects to happen, but rather what would provide the most trading opportunities. The expert anticipates a run to $95,000-$96,000, which would trigger a short opportunity against retail, with Bitcoin potentially reaching the $100,000 psychological level. This area could act as a bull trap, generating liquidity to the downside through long liquidations. However, the long squeeze might rebound once market makers complete the retracement. Interestingly, the analyst has been forecasting an upcoming altseason, based on the BTC.D index. This idea remains relevant as Bitcoin's dominance currently lies within CrypNuevo's key range of 60% to 62%. If Bitcoin follows the projected path, altcoins are likely to follow suit, albeit with a "shallow pullback." This scenario could present a "great opportunity," as the altseason might commence after this brief downturn.
It is crucial to acknowledge that even experienced traders and analysts like CrypNuevo can be mistaken. These analyses do not guarantee that the market will behave as anticipated. Instead, they offer valuable insights for traders and investors to consider during their own evaluations.
