A trader who masterfully predicted Bitcoin’s upswing in 2023 warns that the mother of all cryptocurrencies could face a major correction. It concerns DonAlt, who predicts that based on the long consolidation that Bitcoin is currently experiencing around the price of $ 30,000.
In a new strategy session on YouTube, DonAlt tells his 52,100 subscribers that Bitcoin is currently dealing with several headwinds.
The momentum is gone
Among other things, DonAlt notes that Bitcoin’s momentum is starting to fade. The loss of that momentum occurs when the S&P 500 also reaches an important resistance level and comes when many Binance executives are leaving their jobs at the exchange platform at the same time.
“I’ve been talking about this for a month since the S&P 500 hit the $4,300-$4,200 range. The problem is that we are now experiencing resistance through the S&P 500 and that could slow traditional markets in particular.
Bitcoin is also struggling after the positive news about BlackRock’s ETF filing. That effort could be amplified by the downturn in the S&P and if there are additional problems for Binance, things could quickly go downhill,” said DonAlt.
The analyst says he is still bullish on Bitcoin and sees dips as a good time to buy more. That doesn’t change the fact that he now looks equally bearish about the short term.
“Buy the Dip”
DonAlt’s advice at the moment seems to be mostly to buy the dip if it happens. For the time being, however, the bulls have managed to remain fairly stable, despite the fact that the macroeconomic picture is not yet favorable for the digital currency at the moment.
“If we look at the weekly chart, it doesn’t even look that bad. So I wouldn’t tell people right now to go short with a $24,000 target or anything like that. I’m definitely not in that camp.
If we fall further, you should buy. If we rise, you buy into the first correction. I’m still on team bull, but I think it’s smart to be cautious between $30,000 and $32,000,” the analyst concluded.
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