- Analyst Sheldon Evans questions if the recent crypto dip is a bear trap.
- Ethereum whales are accumulating, signaling potential strength.
- Evans advises investors to prepare for potential buying opportunities.
Crypto analyst Sheldon Evans, also known as The Sniper, recently analyzed the crypto market, asking, “Is Crypto About to Drop 30% or Is This a Bear Trap?”
He noted that while markets appeared promising on Friday, a sudden spike in volatility that night impacted several altcoins, including Phantom and Dogecoin, raising questions about Dogecoin’s potential entry point. Evans highlighted key factors to consider: Was this dip news-driven, influenced by high leverage, or the beginning of a downtrend?
Looking at higher time frames, Evans asserted that the recent pullback does not indicate a market reversal. He suggested that selling during downturns benefits institutional investors (“smart money”) who accumulate at lower prices.
The analyst also observed a trend where large holders of Ethereum (known as “whales”) have been increasing their holdings by 3% over the past three weeks, signaling a shift from weaker to stronger hands. He stated:
“3% of the guys that are holding more than 10,000 ethereum the Wales, okay, look. How they are increasing, look at this. You are seeing a pure, pure state of money going from weak hands to strong hands, every big DP off weak hands,”
Furthermore, Evans mentioned the upcoming Ethereum ETF, drawing parallels to past events with Bitcoin, where price drops (“flush-outs”) occurred before significant bullish moves. He advised investors to remain focused and avoid making emotional decisions.
The analyst also discussed the possibility of a market dip to certain levels, such as $66,000 and $62,000 for Bitcoin. He emphasized the importance of having capital ready to invest at these points if they occur. Evans further urged investors to use stop-loss orders and consider closing positions above the candle wick for improved risk management.
While recommending to take profits in trading accounts to secure gains, Evans remained optimistic about a bullish scenario, viewing recent events as a potential trap set by institutional investors to drive prices upward.
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