A closely followed analyst believes that digital assets still have more room to run to the upside despite calls that crypto may be in the midst of carving a cycle top.
Pseudonymous trader Altcoin Sherpa tells his 240,200 followers on the social media platform X that digital assets can still spark more rallies driven by the “best macro environment in years” along with a pro-crypto US government.
He also highlights that Bitcoin is one strong candle away from printing a new all-time high just as nations and US states consider the possibility of establishing a strategic BTC reserve.
From a technical analysis perspective, Altcoin Sherpa says Bitcoin has been consolidating above $90,000 for months and is just beginning to flash signs of expansion. Meanwhile, he adds that altcoins, especially the old ones, have been witnessing time-based capitulation for years, suggesting they are likely to spark at least one run before the cycle is over.
The analyst also notes that Q1 tends to be a bullish season for crypto based on historical data.
Sentiment-wise, Altcoin Sherpa says he doesn’t think crypto has hit peak mania and signs of overexuberance that typically mark the end of a bull market are still absent.
“All in all, I think we are closer to… this is not the top personally. I think we still have a few months of good times left and probably one to three good strong pumps left.”
While Altcoin Sherpa believes that the bull run is not yet over, he says we are no longer in the early innings of the cycle and it is better to be defensive at this stage. He notes that crypto bears also have solid reasons to believe that the cycle is over including the lack of clear narratives and the hesitance of Bitcoin to ignite strong rallies above $100,000.
At time of writing, Bitcoin is trading for $105,836.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Credit: Source link
