Trader Who Profited from 2023 Crypto Rally Foresees Potential Fake Bitcoin Breakout with ETF Approval

A trader who participated in the cryptocurrency rally earlier this year is issuing a cautionary message about the potential outcomes of a spot-based Bitcoin exchange-traded fund (ETF) receiving regulatory approval.

During a recent strategic discourse, pseudonymous analyst DonAlt conveyed to his 53,000 subscribers on YouTube that the authorization of a Bitcoin ETF could be seen by sellers as an opportunity to divest their BTC holdings.

“While the ETF hasn’t been denied, we did retrace all the way back to the point of its announcement. Thus, this could either mark an unprecedented discount opportunity or be indicative of unfavorable news. I remain divided on the matter, but the present fragility is concerning. Even if an ETF gains approval, there exists the possibility of a decline to the $32,000 to $35,000 range due to the existing weaknesses. This weakness is unique to the realm of cryptocurrencies, and given this, individuals seem predisposed to vend. It’s plausible that individuals might initiate sales at the $32,000, $34,000, or $35,000 thresholds if an ETF receives the green light. Conversely, if the ETF application is rejected, a dip to the range of $20,000 to $19,000 is foreseeable.”

In the event that Bitcoin embarks on a robust bullish streak subsequent to ETF approval, DonAlt contends that BTC bulls will be afforded an opportunity to recalibrate their positions.

“Even if, hypothetically, we experience a rally propelling us to $35,000, and I decide to liquidate before an abrupt surge, I anticipate a retest during a retracement, which would enable me to reenter the market.”

As of the time of this composition, Bitcoin holds a value of $26,062.

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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.