A trader who caught the 2023 crypto rally warns that Bitcoin (BTC) could be one bad news story away from a big sell-off event.
Pseudonymous analyst DonAlt tells his 484,400 Twitter followers that the downside risk for Bitcoin and the rest of the crypto markets is “significantly higher” now than it was half a year ago when the markets witnessed the high-profile collapse of FTX.
“The risk of downside is significantly higher now than it was six months ago. Now that memecoins are pumping and grifters are out there scamming everyone they can there are less and less reasons to go up. Just need to find a reason to nuke.”
According to DonAlt, Bitcoin’s 100% surge from the November 2022 lows is likely just a bounce within a macro bear market.
“If you just look at this move technically:
>Nuke with zero bounces from $69,000 to $16,000
>Retrace some of that with the current move
>Not even back in the old range.
Ignoring my feelings and bullish underlying bias this is nothing more than a bear market rally.”
Although the analyst believes that Bitcoin has not yet crossed bull territory, he remains firm that $16,000 is the bottom for this bear cycle.
“That said I’m still team bottom is in and anything close to $20,000 is an amazing buy. Just think it makes sense to look at both sides of the coin before making decisions and I gotta say, the bear argument is really really good here. Food for thought.”
As for his outlook on Bitcoin, DonAlt says that BTC will likely remain in a sideways trading environment as long as it is trapped between $20,000 and $30,000.
“Can’t remember the last time I’ve seen this much flip-flopping.
It’s simple really:
Above $30,000 – good
Below $30,000 – chop
Below $20,000 – a steal.”
At time of writing, Bitcoin is trading for $27,756.
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