A crypto analyst who correctly predicted that Bitcoin would hit the big time heights it is currently enjoying has again given projections Bitcoin’s future trajectory. As part of his predictions, he highlighted the best and worst case scenarios for the future flagship cryptocurrency.
Bitcoin could soar to $60,000
In a live stream On his TechnicalRoundup YouTube channel, crypto analyst DonAlt noted that Bitcoin could rise to the $60,000 resistance level based on historical patterns. The analyst had highlighted a bullish stance for the quarter, which had occurred in both 2018 and 2021. He also said the current quarter is strikingly similar to those periods.
The analyst believes that the path to $60,000 would be fueled by the Discover Bitcoin ETF rumors (as has been the case thus far) before an approval may come in January. However, the $60,000 price point isn’t all good news, as DonAlt believes the approval will be a ‘sell the news’ event.
If that were the case, he predicts it Bitcoin will drop to $35,000 before it goes up afterwards. He also gave a bearish side to the quarterly setup, suggesting it is more likely to happen because it is “more accurate.” For the bearish setup, he expects a close below the $35,000 resistance level.
He stated that this would indicate a bearish residual test and that investors could expect lower prices as a result.
BTC price looks to retest $43,000 | Source: BTCUSD On Tradingview.com
Why an ETF approval will be a sell-the-news event
DonAlt further elaborated on his position on a possible Spot Bitcoin ETF approval in January be a sell-the-news event. He explained that the reason for this belief is that Bitcoin has risen high (about 3x from the bottom) thanks to these rumors. As such, this would obviously indicate that it is already priced in.
He further noted that he would have had a different opinion if, for example, Bitcoin had been trading at around $25,000 and then approval came. He believes this would have been an easy trade as the flagship cryptocurrency is bound to fly high thanks to such a development.
Renowned economist Peter Schiff shares similar sentiments when he once noted how Bitcoin has risen significantly thanks to the ETF buzz. According to him, there will be no more “good news” that will ever trigger a Bitcoin rally pending Spot Bitcoin ETFs have been approved.
However, trading firm QCP Capital recently highlighted what could prevent this. The company stated that a significant amount of inflows into these ETFs in the first few weeks of trading could prevent the classic sell-the-news event. If these funds see enough liquidity, they predict that Bitcoin could reach its all-time high (ATH) of $69,000 instead.
Featured image from The Block, chart from Tradingview.com
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