Top trader who hit the 2022 Bitcoin bottom warns that the BTC and altcoin rallies could die down very quickly – here’s why
A trader who rode the crypto breakout earlier this year is issuing a warning, saying recent Bitcoin (BTC) and altcoin rallies could abruptly reverse.
In a new strategy session, analyst DonAlt tells his 53,400 YouTube subscribers that crypto markets are likely to rally as traders anticipate the approval of several Ethereum (ETH)-based futures exchange-traded funds (ETFs).
DonAlt believes that the catalyst is not strong enough to sustain the recent rallies in the crypto markets.
“If you look at the Bitcoin daily chart, we are right back at the resistance group. Honestly, I wouldn’t normally mind it that much considering we tested it twice before this third test… But what I don’t like is when the market moves up based on basically bull**it news in my Eyes encounter resistance… because Bull **The stories unfold very quickly…
I don’t like the narrative surrounding it, and I generally don’t like how the market is trading right now.”
Source: DonAlt/YouTube
DonAlt also highlights that crypto futures products have had a strong negative impact on digital asset markets in the past.
“I also think people generally just forget how the Bitcoin futures ETFs performed. Putting them on the diagram doesn’t give a good picture. We had the most Bitcoin futures ETFs [coming out] at the pico tops of the market.
We had one in there [2017] – This essentially ended the bull market. Then we basically had another one in 2021, if I remember correctly, also pretty close to the top. It’s just not the best track record in general, so I’m very confused.”
The Chicago Mercantile Exchange (CME) was the first exchange to launch Bitcoin futures trading in December 2017, the same day BTC hit a cycle high of $20,000. Although CME’s product is not a BTC futures ETF, its launch coincided with the start of a crypto bear market that saw Bitcoin plummet as low as $3,200 in 2018.
In October 2021, ETF provider ProShares launched the first SEC-approved Bitcoin futures ETF. A month later, Bitcoin reached an all-time high of around $69,000 before a bear market began.
At the time of writing, BTC is trading for $27,065.
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