Analyst Updates Outlook on Chainlink, Predicts Altcoins Will Crash Up to 50% If Bitcoin Falls Below This Number
A popular crypto trader says that Chainlink (LINK) is less volatile than other altcoins and could be a safer investment in the coming days.
Pseudonymous trader Altcoin Sherpa says his 192,300 Twitter followers altcoins could collapse by as much as 50% if Bitcoin (BTC) falls to the $21,000 range.
“Could see a flush down to $21k if this current $23k low breaks and that will send alt down 30%-50% from current levels IMO [in my opinion]. Happy to buy some of the strong ones at the time and rebalance my active trading positions. Will be cutting some of them in the next few days.”
The crypto trader says that while it is still uncertain whether Bitcoin will hold the $23,000 range, they still plan to take profits from their altcoin holdings in case it doesn’t.
“This current uptick I plan on shorting. I don’t know if this BTC low is going to hold if tested again and would be willing to buy more of these altcoins higher if that’s what it takes. Taking profits is never a bad thing, and I don’t know if we’re really in just-up mode right now.”
The merchant says Chainlink didn’t perform as strongly as other altcoins during the rally to start the year, but they also say that means LINK is likely to hold up better if markets start to fall.
“LINK: Coins like this underperformed many other options, BUT it will usually be safer than the same altcoins in volatile market conditions. So it’s actually a pretty decent coin to have if you want long exposure (compared to some alts that already has pumped).
Chainlink is worth $7.95 at the time of writing.
The merchant earlier so Bitcoin could fall by up to 15%.
“Kind reminder that BTC can still drop 15% or something in this kind of uptrend and still be ‘fine’. I don’t even think it’s over if we get to $21,000. Alts, however, would get right.”
He noted that Bitcoin has historically experienced 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 fall 15-20% from the local highs and consolidate/go higher. There are many such cases in the past (especially in 2019) where this happened.”
If Bitcoin falls to $21,000, the crypto trader will says they will continue to predict that the king crypt will eventually run to the $30,000 series.
“When people start screaming IT’S OVER if it goes to $21,000….maybe they’re right. Or maybe it’s just to consolidate before a new drive. I still think we’ll go to $30,000 eventually in the medium term personally.”
Bitcoin is trading at $23,681 at the time of writing.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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