A top crypto analyst predicts that Bitcoin (BTC) is at risk of collapse if one scenario plays out in the near term.
Pseudonymous analyst DonAlt tells the 52,300 subscribers of the YouTube channel TechnicalRoundup that Bitcoin is looking at a drop of up to 30% if it loses the key $30,000 level.
He notes that Bitcoin rallied on the positive news of Bitcoin spot exchange-traded fund (ETF) filings and the historic XRP ruling, but that impact may be waning and dragging BTC down.
“Price is higher than yesterday. And I’m much more bearish now than yesterday on Bitcoin.
Now the altcoins could get a little tailwind and the Bitcoin thing could become invalid. I’m not necessarily bearish yet. Overall, the cool thing about Bitcoin right now is that this move actually started with good news, one, and at $30,000, a strong, strong level just showing very clearly, $30,000 round number, $30,000 just feels like a good number.
And I think if we lose both, in fact if we lose the news impact and we lose the $30,000 psychological level, I think this will collapse — like the right nuke level, because you get 10%, 20%, 30% pretty much down a lot almost immediately.”
A 30% drop from Bitcoin’s current price of $30,307 would bring BTC around the $21,000 level.
According to DonAlt, Bitcoin may slowly fall in value in the coming days before the entire crypto markets turn bearish.
“Because this news just made this thing go up 2%. You would expect much, much more. But actually bullish invalidation is 2% away. And so it doesn’t cost too much to be bullish.
Gut feeling of mine still feels like down. I have a few reasons why I’m very defensive in the market. But I think altcoins can carry a little bit of momentum, even if we just bleed out for the next three, four or five days, we can still have a little bit of altcoin action.
But that would honestly be the worst combination. Getting altcoin action as Bitcoin bleeds out this news event is the most bearish it could be…
All full replays of this news event will be very, very bearish. And that means you can be bullish until it actually happens.”
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