Markets are trying to break out of a long downtrend. Meanwhile, two crypto analysts, Altcoin Sherpa and Coin Bureau, are citing bearish expectations for some coins. Here are the details…
Altcoin Sherpa is ready to see a drop in these cryptocurrencies
Altcoin Sherpa says layer-1 blockchain Avalanche (AVAX) and Ethereum (ETH) scaling solutions Polygon (MATIC) and Optimism (OP) are poised to see the dips. The analyst says downside market conditions could push AVAX below $13 before it starts to recover. The analyst uses the following statements:
AVAX: The overall market structure is still bearish, if this is the bottom then it wouldn’t be surprising to see at least $13. The formation will look like a double bottom. It’s still on the decline for now.
Altcoin Sherpa later mentioned MATIC. He said that while he expects stability in the wider framework of the cryptocurrency, a major drop could be seen. It expects depreciation before consolidating at $0.60 towards the end of the year. MATIC is currently trading as much as 50 percent above the analyst’s low of $0.35.
Looking at the OP, Altcoin Sherpa says he saw a drop to $0.50 in the altcoin. He thinks he won’t be seen to bounce back for a while. “Don’t buy long-term in my opinion,” he says.
Analyst: This winter will be awful
The host of the Coin Bureau YouTube channel warns that increases in interest rates will negatively affect crypto assets. The analyst said that as interest rates rise, Bitcoin (BTC) could drop by over 35% from the current level. “Now as higher interest rates rise, less attractive risk assets like stocks and especially crypto will be for investors,” he said. He said that many expect BTC to drop to $12,000 due to the possibility of further selling.
According to the analyst, the 0.75 percent rate hike by the Fed is already priced in. Thus, it reduces the chance of Bitcoin falling over 35%. However, he says rates could be raised by a higher figure in the future, based on a tool (the FedWatch tool) used to predict the Fed’s interest rate decisions. According to the statement made yesterday evening, as we reported as Kriptokoin.com, the FED increased by 75 basis points. That’s why the analyst is talking about . The probability of a fall to the dollar decreased.
Besides interest rate hikes, Coin Bureau analyst says Bitcoin is facing other threats such as a negative technical outlook and growing open interest. According to CFTC (Commodity Futures Trading Commission) data, many institutional investors opened short positions for BTC. For those who prefer to rely on technical analysis, he said, “there is no comfort”. “In short, this winter is going to be awful whether you’re in stocks, crypto or anything else,” the analyst concluded.
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