Trader Who Nailed 2022 Bitcoin Bottom Warns of Downside Risk for BTC, Says Markets Looking for Reason To Correct
A dealer who caught the 2023 crypto rally warns that Bitcoin (BTC) may very well be one unhealthy information story away from a giant sell-off occasion.
Pseudonymous analyst DonAlt tells his 484,400 Twitter followers that the draw back danger for Bitcoin and the remainder of the crypto markets is “considerably larger” now than it was half a yr in the past when the markets witnessed the high-profile collapse of FTX.
“The chance of draw back is considerably larger now than it was six months in the past. Now that memecoins are pumping and grifters are on the market scamming everybody they will there are much less and fewer causes to go up. Simply have to discover a cause to nuke.”
In keeping with DonAlt, Bitcoin’s 100% surge from the November 2022 lows is probably going only a bounce inside a macro bear market.
“When you simply take a look at this transfer technically:
>Nuke with zero bounces from $69,000 to $16,000
>Retrace a few of that with the present transfer
>Not even again within the outdated vary.
Ignoring my emotions and bullish underlying bias that is nothing greater than a bear market rally.”
Though the analyst believes that Bitcoin has not but crossed bull territory, he remains agency that $16,000 is the underside for this bear cycle.
“That stated I’m nonetheless staff backside is in and something near $20,000 is a tremendous purchase. Simply assume it is smart to have a look at each side of the coin earlier than making selections and I gotta say, the bear argument is absolutely actually good right here. Meals for thought.”
As for his outlook on Bitcoin, DonAlt says that BTC will possible stay in a sideways buying and selling setting so long as it’s trapped between $20,000 and $30,000.
“Can’t keep in mind the final time I’ve seen this a lot flip-flopping.
It’s easy actually:
Above $30,000 – good
Beneath $30,000 – chop
Beneath $20,000 – a steal.”
At time of writing, Bitcoin is buying and selling for $27,756.
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