Bitcoin’s failure to surpass key resistance levels signals a possible downturn, a top trader warns

A prominent cryptocurrency trader has warned that the price of flagship cryptocurrency Bitcoin ($BTC) has been struggling to clear significant resistance levels for an extended period, which he believes could mean BTC could soon face a significant downtrend.

In a video shared with his more than 52,000 subscribers on Google-owned video-sharing platform YouTube, pseudonymous analyst DonAlt expressed his increasingly bearish view of Bitcoin, noting that he is not currently short BTC .

One of the factors contributing to DonAlt’s negative sentiment is Bitcoin’s inability to scale above a resistance level just below $32,000 despite robust performance from global stock markets.

According to the analyst, BTC has tested the $31,500 level multiple times and failed to break above it as “it’s been weak” at a time when the stock market’s benchmark index, the S&P 500, has been showing strength .

DonAlt added that other stock market indices, including the Nasdaq, Germany’s DAX index and France’s CAC 40, as well as other European indices were strong, with some returning to record highs. Bitcoin, on the other hand, wasn’t nearly there yet.

DonAlt also finds it worrying that Bitcoin is showing a downtrend despite a generally positive news environment. The analyst pointed out that when he bought BTC for around $15,000-$16,000, he assumed the cryptocurrency should have dropped to zero due to the collapse of FTX and other big players in the space.

According to him, despite a plethora of negative news, the price of the cryptocurrency continued to rise. Now, he says, despite a slew of positive news, the price is bearish, biasing it towards a possible bearish downturn in the near future.

The bearish forecast comes at a time when many analysts are bullish on BTC. As reported by CryptoGlobe, London-based multinational banking and financial services company Standard Chartered has previously hinted that the price of the flagship cryptocurrency will surge to $50,000 this year and break through $120,000 by the close in 2024 could, which is another major bullish price prediction for BTC.

Featured image via Unsplash.

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