A trader who experienced the 2023 crypto rally warns that Bitcoin (BTC) could be one bad news away from a major sell-off.
Pseudonymous analyst DonAlt tells are 484,400 Twitter followers that the downside risk to Bitcoin and the rest of the crypto markets is now “significantly higher” than it was six months ago when markets witnessed the high-profile collapse of FTX.
“The risk of a downtrend is now significantly higher than it was six months ago. With memecoins pumping and scammers scamming everyone they can, there are fewer and fewer reasons to go up. I just need to find a reason to nuke.
According to DonAlt, Bitcoin’s 100% Rise From November 2022 Lows Is Likely Just a bounce within a macro bear market.
“If you look at this step technically:
>Nuke with no bounces from $69,000 to $16,000
>Repeat part of it with the current move
> Not even back in the old range.
Ignoring my feelings and bullish underlying biases, this is nothing more than a bear market rally.”
While the analyst believes that Bitcoin has not yet passed bull territory, he says remains established that $16,000 is the bottom for this bear cycle.
“That said, I’m still at the bottom of the team and anything close to $20,000 is a great buy. Just think it makes sense to look at both sides of the coin before making any decisions and I must say the bear argument here is really, really good. Something to think about.”
As for his take on Bitcoin, DonAlt say that BTC will likely remain in a sideways trading environment as long as it is stuck between $20,000 and $30,000.
“I can’t remember the last time I saw so much flip-flopping.
It’s actually very simple:
Over $30,000 – good
Less than $30,000 – heels
Less than $20,000 – a steal.
At the time of writing, Bitcoin is trading at $27,756.
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