Top Crypto Trader Warns Polygon, Binance Coin and One Ethereum Rival Risk Crashing if Bitcoin Dumps
A widely followed crypto analyst is warning that a Bitcoin (BTC) dump would likely cause the price crash of Polygon (MATIC), Binance Coin (BNB) and Cosmos (ATOM).
The pseudonymous analyst Altcoin Sherpa tells his 187,300 Twitter followers that he thinks Bitcoin is due for another dump to the price range of $10,000 to $14,000, potentially dragging down some layer-1 altcoins.
At time of writing, Bitcoin is changing hands at $16,636.
Altcoin Sherpa says he is focusing on these layer-1 blockchain projects because of their value capture potential.
He first looks at BNB, the token of Binance’s crypto exchange. If Bitcoin’s price holds up, he says BNB would likely reclaim its $300 price range. But if Bitcoin dumps, he says BNB will lose support in the $200 price range.
“BNB: This should go back to the $300s if BTC holds up. If BTC dumps big, buy at $150.”
At time of writing, BNB is trading hands at $270.
He next looks at Ethereum (ETH)-scaling platform MATIC, saying the altcoin has shown strength with business partnerships and recent rallies. But he predicts with a Bitcoin dump, MATIC may see a more than 40% decline.
“MATIC: has great BD (business and development) and partnerships, this already went a few times from the bottom and still should be OK. BTC dumps big, buy at $0.50 again.”
At time of writing, MATIC is trading hands at $0.88.
Turning his focus on the Ethereum rival ATOM, he says it could drop to the $5 range if Bitcoin drops to the $10,000 to $14,000 price range. ATOM had lost bull support around the $16 price level in September and again earlier this month in the $15 range.
“ATOM: BTC dumps, buy in the $5s.”
At time of writing, ATOM is trading hands at $9.89.
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Feature Image: Shutterstock/Dolan Mbengi