Analyst Says, Altcoins Will Drop 50% If BTC Goes Below This Amount – Fintechs.fi

A famous crypto trader claims Chainlink (LINK) is less volatile than other altcoins and may be a safer investment in the coming days.

If Bitcoin (BTC) drops to $21,000, Altcoin Sherpa warns his 192,300 Twitter followers that altcoins may crash by 50%.

“Could see a flush down to the $21,000s if this current $23,000 low breaks and that’ll send alts down 30%-50% from current levels IMO [in my opinion]. Happy to buy some of the strong ones at that time and rebalance my active trading positions. Going to cut some of them in the following days.”

The crypto trader plans to extract profits from their altcoin holdings if Bitcoin doesn’t hold the $23,000 area.

“This current move up I plan to derisk. I don’t know if this BTC low is going to hold if it’s tested again and will happily buy more of these altcoins higher if that’s what is needed. Taking profit is never a bad thing and I don’t know if we’re truly in up-only mode right now.”

The trader adds Chainlink did not perform as well as other cryptocurrencies during the rise to start the year, but it implies LINK will likely hold up better if the markets collapse.

“LINK: Coins like this underperformed many other alts BUT it’s typically going to be safer than those same altcoins in shaky market conditions. So rn it’s actually a pretty decent coin to have if you want long exposure (relative to some alts that already pumped).”

At the time this was written, Chainlink was worth $7.95.

The trader earlier predicted a 15% Bitcoin drop.

“Friendly reminder that BTC can still dip 15% or something in these types of uptrends and still be ‘fine’. I don’t even think it’s over if we get to the $21,000s. Alts would get rekt.”

Bitcoin has had 15%–20% rallies and troughs historically.

“BTC: 1 thing to note is that a lot of volatility does not necessarily mean ‘it’s over’. Price can still dip 15%-20% from the local highs and consolidate/go higher. There are many such cases in the past (especially in 2019) where this happened.”

The crypto trader predicts Bitcoin will reach $30,000 if it falls below $21,000.

“When people start screaming IT’S OVER if it goes to $21,000 ….maybe they’re right. Or maybe it’s just consolidating before another run-up. I still believe we go to $30,000 eventually in the mid-term personally.”

Bitcoin currently costs $23,681.