Analyst updates Chainlink outlook and forecasts altcoins to plummet by up to 50% if Bitcoin falls below this number
A popular crypto trader says Chainlink (LINK) is less volatile than other altcoins and could be a safer investment in the coming days.
Pseudonymous altcoin trader Sherpa tells his 192,300 Twitter followers that altcoins could plummet by as much as 50% if Bitcoin (BTC) dips into the $21,000 area.
“Could see a drop to $21k if that current low of $23k breaks and that will send the alts down 30% to 50% from current levels IMO [in my opinion]. I’m looking forward to buying some of the then strong ones and rebalancing my active trading positions. I’ll be cutting some of these over the next few days.”
The crypto trader says that while it remains uncertain whether Bitcoin will hold the $23,000 range, they still plan to take profits on their altcoin holdings if it doesn’t.
“In this current climb, I plan to reduce risk. I don’t know if this BTC low will hold if retested and will happily buy more of these altcoins higher if the need arises. Taking profits is never a bad thing and I don’t know if we’re really in up-only mode right now.”
The trader says Chainlink didn’t perform as strongly as other altcoins during the rally earlier in the year, but they also say LINK is likely to hold up better when markets start to decline.
“LINK: Coins like these have outperformed many other altcoins BUT they are typically safer than the same altcoins in shaky market conditions. So it’s actually a pretty decent coin if you want a long exposure (compared to some alts that have already been pumped).”
Source: Altcoin Sherpa/Twitter
Chainlink is worth $7.95 at the time of writing.
The trader previously said Bitcoin could drop as much as 15%.
“Friendly reminder that on this type of uptrend, BTC can still drop 15% or something and still be ‘okay’. I don’t even think it’s over when we hit $21,000. Alts, on the other hand, would become rect.”
He noted that Bitcoin has historically seen rallies and falls of around 15% to 20%.
“BTC: One thing to note is that a lot of volatility doesn’t necessarily mean ‘it’s over’. The price can still drop 15% to 20% from local highs and consolidate/move higher. There have been many such cases in the past (particularly in 2019) where this has happened.”
Source: Altcoin Sherpa/Twitter
If bitcoin drops to $21,000, the crypto trader says he will continue to predict the crypto king will eventually push into the $30,000 area.
“If people start screaming IT’S OVER by the time it hits $21,000… maybe they’re right. Or maybe it’s just consolidating before another attempt. I still believe that we will personally go to $30,000 in the mid-term.”
Bitcoin is trading at $23,681 at the time of writing.
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