A trader who rode the crypto rally masterfully this year warns that Bitcoin (BTC) could witness a sell-off event amid an extended consolidation at the $30,000 level.
In a new strategy session, top crypto analyst DonAlt tells his 52,100 YouTube subscribers that Bitcoin faces multiple headwinds as it struggles to rise above a key psychological level.
According to DonAlt, Bitcoin's momentum appears to have petered out just as the S&P 500 hit a key resistance level and news broke about Binance executives leaving the world's largest crypto exchange amid ongoing investigation by the US Department of Justice (DOJ).
"I've been talking about this for about a month since we hit $4,300-4,200 on the S&P (500). The problem is that we ran into resistance from the S&P, and I could see that (slow down ) traditional markets.
So if you're struggling after having such a big catalyst like BlackRock's ETF app, if that's thwarted by the S&P risking just a bit and then you have other issues with Binance, I could see that it's pretty explosive and pretty bad...
It takes too long. We have a lot of risky stuff in the market, and the S&P is in resistance. »
Although DonAlt says he's starting to be cautious on BTC, he points out that he's still bullish on the king of crypto and that any dip would be an opportunity to accumulate more Bitcoin.
"But on the face of it, you're looking at the weekly (chart) and it's not a bad chart. So I wouldn't necessarily say to people, 'Hey, that's where you're short and your target is $24,000 or whatever." I'm not really in that camp.
If anything, if we go low, you want to buy this. And if we go high, you want to buy the first retracement. So I'm still a team bull, but I think it makes sense to be a little conservative between $30,000 and $32,000.
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