“Explosive” and risky developments lie ahead for Bitcoin, warns trader who witnessed the 2023 crypto rally
A trader who has masterfully ridden the crypto rally this year is warning that Bitcoin (BTC) could see a sell-off amid extended consolidation at $30,000.
In a new strategy session, top crypto analyst DonAlt tells his 52,100 YouTube subscribers that Bitcoin faces multiple headwinds as it struggles to scale above a key psychological level.
According to DonAlt, Bitcoin’s momentum appears to have waned just as the S&P 500 hit a key resistance level and news broke that Binance executives had exited the world’s largest crypto exchange amid an ongoing US Department of Justice (DOJ) investigation .
“I’ve been talking about this for about a month since we hit basically $4,300 to $4,200 on the S&P(500). The problem is that we have encountered resistance from S&P and I could see that this has (slowed down) the traditional markets.
So if you’re struggling after you have a big catalyst like BlackRock’s ETF filing, if that’s counteracted by the S&P de-risking a bit, and then you’ve got more Binance issues, I imagine that this is going to be pretty explosive pretty bad…
It takes too long. We have a lot of risky stuff in the market and the S&P is facing resistance.”
Although DonAlt says he’s starting to be cautious about BTC, he stresses that he’s still bullish on the crypto king and that any drop would be an opportunity to accumulate more Bitcoin.
“But if you look at the weekly chart, you can just see that it’s not a bad chart. So I wouldn’t necessarily tell people, “Hey, here you are closing short positions and your target is $24,000 or whatever.” I’m not really in that camp.
If anything, if we sink, you’ll want to buy that. And when we go high, you want to buy the first return. So I’m still bullish on the team, but I think it makes sense to be a bit cautious between $30,000 and $32,000.”
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