Bitcoin's (CRYPTO: BTC) dip to as low as $92,805 is the lowest price since Nov. 26, when the apex crypto last traded below $91,000.
Cryptocurrency traders and analysts alike are speculating whether Bitcoin has found a bottom at these prices or is to sink further.
Trader Notes: Altcoin Sherpa, a well-known trader, predicts Bitcoin will find a relative bottom soon but warns of further downside before any potential reversal.
In a post on X on Friday, he advised his followers to "bid the next move down" and to monitor low time frames, cautioning that a quick V-shaped recovery is unlikely.
We're getting close, I think that $BTC should be finding a relative bottom very shortly...expecting a bit more downside and then some sort of reversal. Not sure if this is 'the' bottom but yeah. Let's see. pic.twitter.com/MEhBhWyzKX
— Altcoin Sherpa (@AltcoinSherpa) December 20, 2024
In another post, Sherpa speculated that a short-term BTC bounce could trigger a temporary surge in altcoins.
He foresees a range-bound market with eventual price declines, aligning with his personal strategy to consolidate portfolio holdings into fewer, high-conviction assets.
Despite the current volatility, he remains optimistic about January 2025 being a strong period for altcoins.
Amid the sell-off, crypto liquidations have surpassed $1 billion for the second straight day, while open interest has fallen by 8% to $62.6 billion.
Also Read: Bitcoin's 2025 Outlook Suddenly Looks Uncertain: Here's Why
In a Dec. 20 podcast, Benjamin Cowen emphasized that Bitcoin dominance had reached his anticipated 60% target for this cycle, citing historical patterns. He drew parallels to 2020, when dominance unexpectedly surged following a decline.
Cowen underscored the significance of analyzing Bitcoin dominance excluding stablecoins, noting a previous high of 65%.
He also linked dominance trends to macroeconomic factors such as the dollar's strength and the yield curve.
If the dollar tops out in early January 2025, Cowen suggests Bitcoin dominance may do the same.
Looking ahead, he expects Bitcoin dominance to continue climbing, possibly aligning with the Federal Reserve's potential shift toward quantitative easing.
Historically, altcoins like Ethereum (CRYPTO: ETH) often underperform against Bitcoin until January of the post-halving year.
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