Altcoin Sherpa, a popular crypto analyst on Twitter, has told his followers that he does not believe that Bitcoin (BTC) is at its bottom. A lot more chops would change his mind, indicating a further sideways market.
Sherpa told his 176K followers that he does not want to witness a “bouncing ball” price action in regards to Bitcoin (BTC), with small 10% moves that hammer support again and again, which in his opinion is “going to be scary”.
However, Sherpa does admit that it is nuanced, and like always, very difficult to tell if the market is accumulating, or if the short-term support is at its end.
For capitulation, as seen in 2018 and 2020, Sherpa says, we need one big shakeout before a period of accumulation can start. Sherpa does not believe that we have hit capitulation as of yet. However, he is open to the idea that we see small decrements instead a traditional capitulation signal.
The popular analyst also notes that the heavy volatility and high volume wicks in both directions have destroyed Bitcoin (BTC) investors in the low time frame. Additionally, the Bitcoin fear and greed index was at 10 at press time, indicating extreme fear.
Post volatility, Sherpa says, we see a cooling period with low volumes, where everyone gets a little “bored”. Sherpa compared this to what is going on right now, and this could potentially last for weeks or months.
Sherpa notes that the current situation cannot be compared to what was going on in May of 2021 when the macroeconomic conditions were a lot better.
In his Tweet, Sherpa further stated,
“I’m still thinking we have some pain to come- maybe we get a relief pump in June/July but I don’t know if this is ‘the bottom.”
However, he does say that this could be a potentially good trading opportunity, given we see a 20% move up, or something along those lines.
At press time Bitcoin (BTC) was trading at $30,661.63.