Analyst Updates Outlook on Chainlink, Predicts Altcoins To Crash 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 trader Altcoin Sherpa tells his 192,300 Twitter followers altcoins may collapse by as much as 50% if Bitcoin (BTC) dips to the $21,000 range.
“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 says that while it remains uncertain if Bitcoin is going to hold the $23,000 range, they still plan to take profits from their altcoin holdings in case it doesn’t hold.
“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 says Chainlink did not 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 the markets start to decline.
“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).”
Chainlink is worth $7.95 at time of writing.
The trader previously said Bitcoin could dip by up to 15%.
“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, on the other hand, would get rekt.”
He noted that historically Bitcoin has experienced rallies and dips of about 15% to 20%.
“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.”
If Bitcoin dips to $21,000, the crypto trader says they will continue to predict the king crypto will eventually make a run to the $30,000 range.
“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 is trading for $23,681 at time of writing.