A widely followed crypto analyst is issuing a new warning about the digital asset market during the final days of the year.
The pseudonymous analyst known as Altcoin Sherpa tells his 234,800 followers on the social media platform X that the crypto market may experience wild price swings to close out December.
However, the analyst predicts markets may rally in January based on historical precedence.
“We probably get one-plus more flushes before the year’s end, but keep your eye on the prize and manage yourself through the volatility.
January is historically a great month for crypto. In my opinion, sell bags you don’t like as much for cash and save that to deploy on bags you do like.”
The analyst also says that some crypto projects are showing strength amid the broad market sell-off such as decentralized finance protocol Usual (USUAL).
“One note on the USUAL chart: if you see a coin standing out above the rest amidst insane market volatility, it’s usually a sign that this is a very good coin. This one didn’t budge when everything was down 20%. I added more on this dip and will add even more if it goes further…
I bought anywhere from like $1.08-$1.20 and I’ll continue adding. This one is a winner in my opinion. Hits a bunch of narratives, and I think that this one still outperforms a bunch of others.”
USUAL is trading for $1.25 at time of writing, down over 13% in the last 24 hours.
Next up, the analyst suggests that Bitcoin (BTC) may soon hit a local market bottom after collapsing below $100,000 this week.
“We’re getting close. I think that BTC should be finding a relative bottom very shortly, expecting a bit more downside and then some sort of reversal. Not sure if this is ‘the’ bottom but yeah, let’s see.”
Looking at his chart, the trader suggests that Bitcoin could decline to $90,911 on the four-hour chart before reversing.
Bitcoin is trading for $97,325 at time of writing, a fractional increase in the last 24 hours.
Generated Image: Midjourney
