‘Be on Guard’: Trader Says Altcoin Bounce May Be Temporary, Tracks Bitcoin’s Next Targets

One crypto analyst and trader with a large following is cautioning that a potential altcoin market rebound may not last long.

In a recent post on X, a popular social media platform, the pseudonymous trader Altcoin Sherpa shared with his 243,900 followers that based on historical trends, altcoins could give back gains after a bounce.

Altcoin Sherpa also predicts that Bitcoin (BTC) might establish $84,000 as a support level soon and could sustain its bullish momentum by breaking through $89,000.

“BTC seems poised to break through $84,000 first and then potentially target $89,000. Altcoins may experience a temporary bounce, but the strength is uncertain. Stay cautious.”

According to the analyst’s chart, if Bitcoin can reclaim $98,703 as support, it may reach new all-time highs. However, a breakdown below $78,167 could send Bitcoin tumbling to the $60,000 range.

At the time of writing, Bitcoin is trading at $84,154, showing a 4.6% increase in the last 24 hours.

Altcoin Sherpa also warns that altcoins like the memecoin WIF may struggle to recover higher price targets if Bitcoin enters a bearish phase.

“The situation looks more dire for altcoins this time around because Bitcoin might remain stagnant for a while. If Bitcoin drops to $50,000 or lower, these altcoins may not recover for a long time. Look at WIF.”

WIF is currently trading at $0.50, showing a 9.7% increase in the last 24 hours.

The analyst suggests that altcoins may experience a bounce even while maintaining a bearish price structure with lower highs.

“Although the altcoin market is in a bearish phase, it’s essential to remember that a bounce will occur, and altcoins can still see significant gains from current levels. Markets do not move in a straight line downwards. I anticipate a bounce within the next one to two months.”

He uses the two-day chart of Ethereum (ETH) to demonstrate how altcoins can rebound within a larger downtrend.