Crypto analyst Xanrox warns against buying Bitcoin due to a looming crash and suggests investing in altcoins instead for potential gains.
Crypto analyst Xanrox has advised market participants against buying Bitcoin, warning that a crash is looming for the leading crypto. Instead, the analyst advised buying altcoins, which are likely to offer greater gains.
In a TradingView analysis, Xanrox advised against buying Bitcoin, citing the crypto’s bearish price action. Commenting on BTC’s daily chart, he noted that the LOG scale shows a bearish flag pattern, indicating bearish price action. He added that it will be a technical error to buy or go long at the resistance of the channel.
Xanax further revealed that Bitcoin’s price is currently within the channel, indicating a huge selling wall above the current price. The analyst admitted there is still a chance BTC could rise to between $83,000 and $84,000. However, he advised opening a short position at this point rather than longing BTC.
Source: Chart from Xanrox on Tradingview
The analyst’s accompanying chart indicated that the recent Bitcoin rally was simply a bull trap, with BTC now at risk of dropping to around $60,000. BTC notably fell below $80,000 yesterday following the release of the U.S. PPI inflation data, which showed that inflation rose 6% year-over-year (YoY) in April due to the U.S.-Iran war.
Meanwhile, Xanrox also noted that Bitcoin’s dominance is bearish, which is a strong sign of an altcoin season. He stated that the BTC price is currently looking to retest the main channel’s support trendline at around $60,000.
Xanrox cites Bitcoin's bearish price action and a bearish flag pattern on its daily chart as indicators of an impending crash.
Xanrox recommends buying altcoins, which he believes are likely to offer greater gains compared to Bitcoin.
Xanrox mentions that Bitcoin could rise to between $83,000 and $84,000, but advises against buying at that point.
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Xanrox listed ADA, TRX, LINK, DOGE, BNB, XLM, XRP, and ETH as altcoins to buy for those looking to trade with huge banks and institutions because they control the price of these coins. He reiterated that market participants should avoid Bitcoin as its dominance is falling and that it has already pumped from its February lows of around $60,000.
Meanwhile, the analyst stated that trading lower-cap coins will be better for those looking to make much more profit, as those coins have greater upside than the major altcoins, which he described as ‘bank’s coins.’ Some altcoins have recorded significant gains over the last month, with TON, SUI, and ONDO leading the way.
TON is up almost 50% in the last month, rising to almost $3 as the Toncoin network’s fees dropped by 600%. The altcoin also recorded this surge as the Toncoin network now offers one of the most attractive yields among all layer-1 networks. Meanwhile, SUI and ONDO are up over 26% and 57%, respectively, on the back of bullish fundamentals in their respective ecosystems.
At the time of writing, the Bitcoin price is trading at around $79,600, down in the last 24 hours, according to data from CoinMarketCap.
BTC trading at $79,846 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com