A closely followed crypto trader says Bitcoin (BTC) is showing significant strength despite concerning developments in the digital asset sector.
Pseudonymous trader Altcoin Sherpa tells his 196,300 followers on the social media platform X that Bitcoin could reach $28,000 and beyond on its current rally despite what could be considered negative news for crypto.
The trader apparently refers to both the consumer price index (CPI) report coming in this week showing an increase in inflation and a court ruling that allows bankrupt FTX to sell off its crypto assets.
“IMO (in my opinion) the market trades higher in the short term. The way that BTC price absorbed the ‘bad news’ of CPI and FTX selling off means that we’re going to $28,000-plus IMO. Usually, the market reaction to news is a good reflection of where we go in the short term.”
The trader draws a comparison to 2020 when Bitcoin also withstood challenging developments in the crypto space.
“I.e. I remember in 2020 during the massive consolidation period (after March), price would shrug off every piece of bad news thrown at it and barely move. Binance [fear, uncertainty and doubt]? Tether FUD? Black swan FUD? Didn’t matter.”
According to the trader, Bitcoin is flashing bullishness despite the FTX asset sale ruling.
“Am I saying this is like 2020? Hell no, we’re nowhere close to that environment.
But if things were truly really bearish, price would have capitulated off that FTX news IMO. Instead we barely moved anywhere and price kept chopping.
Great sign for us I think.”
Bitcoin is trading for $26,470 at time of writing, up 0.6% in the last 24 hours.
Next, the trader issues a warning about Ethereum (ETH) rival Solana (SOL). He says that Solana appears to be in a larger downward trend despite a recent rally, since SOL is printing lower high prices in the last few weeks.
“SOL: Would be cautious on this current move up. It’s nice to see some recovery, but every rally in the last few weeks has resulted in just a lower high. Regardless, if you’re in it for an investment, it can’t be bad to accumulate sub-$20 IMO.”
Despite the near-term concern, the trader believes that there is huge upside potential for Solana in the next bull market cycle.
“Lots of activity around the $14 level. It’ll depend on how the FTX assets are sold off, but I do think that SOL is going to do great multiples next cycle (as will everything else). I think accumulating from $15-$5 is a good strategy. Scale in, [dollar cost average], don’t ape IMO.”
Solana is trading for $18.80 at time of writing, down 1% in the last 24 hours.
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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 loses 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.
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