Trader who hit Bitcoin bottom in 2022 warns of downside risks for BTC, says markets looking for reasons to correct
A trader who witnessed the 2023 crypto rally warns that Bitcoin (BTC) could be just one bad news away from a major sell-off event.
Pseudonymous analyst DonAlt tells his 484,400 Twitter followers that the downside risk for Bitcoin and the rest of the crypto markets is now “significantly higher” than it was half a year ago when markets witnessed FTX’s high-profile collapse.
“The downside risk is now significantly higher than it was six months ago. Now that memecoins are pumping and scammers are out there scamming everyone, there are fewer and fewer reasons to go up. You just have to find a reason to use nuclear weapons.”
According to DonAlt, Bitcoin’s 100 percent surge from the November 2022 lows is likely just an upleg within a macro bear market.
“If you just look at this step technically:
>Nuke with no bounces from $69,000 to $16,000
> Follow up on some of this with the current move
>Not even back to the old area.
Ignoring my feelings and my underlying bullish bias, this is nothing more than a bear market rally.”
While the analyst believes Bitcoin has yet to cross bull territory, he remains adamant that $16,000 is the bottom for this bear cycle.
“Even so, I’m still bottom of the team and anything close to $20,000 is an amazing buy. Just think it makes sense to look at both sides of the coin before making any decisions and I have to say the bear argument is really very good here. Food for thought.”
As for his outlook on Bitcoin, DonAlt says that BTC is likely to remain in a sideways trading environment as long as it’s trapped between $20,000 and $30,000.
“I can’t remember the last time I saw so many flip flops.
It’s really simple:
Over $30,000 – good
Under $30,000 – hack
Under $20,000 – a steal.”
At the time of writing, Bitcoin is trading at $27,756.
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check the latest headlines
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Halfway
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.