Top analyst issues warning amid market doldrums, saying one factor could lead to cryptocurrencies being “destroyed”.
A trader, aptly describing the crypto rally earlier this year, warned that digital assets could collapse if a financial trend hits.
Pseudonymous analyst DonAlt tells his 500,200 Twitter followers that he’s keeping a close eye on the S&P 500’s performance.
According to DonAlt, if the stock market shows signs of bullish exhaustion, Bitcoin (BTC) and the broader crypto markets are likely to see a serious correction.
“The problem with crypto not going up when stocks go up is that once stocks stop rallying, we’re screwed.
And that’s exactly what’s happening. Bulls better pray to god that the S&P just goes into bullish mode because when it doesn’t, the crypto nukes will be properly deployed.”
Looking at Bitcoin, DonAlt says that BTC could show some semblance of upside if it manages to regain the key psychological $30,000 level.
“BTC update: I’m still watching for the first signs that bulls haven’t been neutered at $30,000 but bulls continue to disappoint.
$27,000 is support, but not good enough for a blind bid. I’d rather just wait until we get some upward momentum back.
As nothing has changed it is still pessimistic.”
Source: DonAlt/Twitter
Currently, DonAlt believes that Bitcoin’s recent price action suggests that BTC is likely to see further downside after retesting the $29,000 resistance level.
“BTC update: some bulls were pressured before bears were pressured which ended in a bearish retest. As long as we close below $30,000 this is still bearish rather than bullish. I’m still sitting on my wings until further notice.”
Source: DonAlt/Twitter
Bitcoin is trading at $29,019 at the time of writing, down 0.9% over the past 24 hours.
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