Trader Who Captured 2023 Crypto Rally Issues Warning About ‘Explosive’ and High-Risk Bitcoin Developments

Expert Crypto Trader Warns of Potential Bitcoin Sell-Off Amidst Consolidation at $30,000 Level

In a recent strategy session, highly regarded crypto analyst DonAlt cautions his dedicated YouTube following of 52,100 subscribers about the possibility of a sell-off event for Bitcoin (BTC). Despite skillfully riding the wave of the crypto rally this year, DonAlt believes that the leading cryptocurrency could face significant challenges as it strives to surpass a crucial psychological threshold.

According to DonAlt, Bitcoin’s momentum has noticeably weakened, coinciding with the S&P 500 encountering a major resistance level. Additionally, news regarding the departure of Binance executives amidst an ongoing investigation by the U.S. Department of Justice (DOJ) has further dampened sentiment surrounding the world’s largest crypto exchange.

“I’ve been discussing this for approximately a month, ever since we reached the $4,300 – $4,200 mark on the S&P 500. The issue lies in our encounter with S&P resistance, which could potentially hinder traditional markets. If the remarkable catalyst of BlackRock’s ETF application is offset by the S&P exhibiting a risk-averse stance, along with additional concerns surrounding Binance, we might witness a volatile and unfavorable situation…”

DonAlt emphasizes his growing cautiousness regarding BTC; however, he affirms his overall bullish stance on the cryptocurrency king and suggests that any dips in its price should be perceived as opportunities to accumulate more Bitcoin.

“Yet, when you scrutinize the weekly chart, it presents a favorable outlook. So I wouldn’t outrightly advise individuals to short Bitcoin at this stage, with a target of $24,000 or similar levels. I don’t align myself with that perspective. In fact, if the price goes down, it would be wise to consider buying. And if it surges, aim to buy during the initial pullback. I’m still firmly on the bullish side, but it’s reasonable to exercise caution within the $30,000 to $32,000 range.”

This comprehensive analysis by DonAlt offers valuable insights into the potential risks and opportunities within the current Bitcoin landscape, urging investors to tread carefully while remaining optimistic about the cryptocurrency’s long-term prospects.

Read Also: Expert Crypto Analyst Forecasts Impending Short Squeeze for Binance Coin (BNB)

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.