Bitcoin: Is a Massive Sell-Off Still on the Tables?
A trader who profited from the crypto rally in 2023 has issued a warning, suggesting that Bitcoin (BTC) could face a significant sell-off triggered by negative news.
DonAlt, an anonymous analyst, believes that the downside risk for Bitcoin and the broader crypto markets had substantially increased compared to six months ago when FTX experienced a well-publicized collapse.
The risk of downside is significantly higher now than it was 6 months ago
Now that memecoins are pumping and grifters are out there scamming everyone they can there are less and less reasons to go up
Just need to find a reason to nuke
— DonAlt (@CryptoDonAlt) May 8, 2023
According to DonAlt, the surge of meme coins and the prevalence of scammers in the market have dampened the reasons for prices to rise further, making a downward movement more likely. The analyst states that a catalyst is needed to initiate a substantial decline.
DonAlt views Bitcoin’s 100% surge from its November 2022 lows as a temporary bounce within a larger bear market. Analyzing the recent price movement, the trader notes a steep decline from $69,000 to $16,000 with no significant recovery and a partial rebound in the current movement, but the price has not returned to its previous range.
DonAlt emphasizes that this rally is merely a bear market rally, setting aside personal feelings and a bullish bias.
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Despite not considering Bitcoin to have entered bull territory, DonAlt maintains the belief that $16,000 marks the bottom of the bear cycle. The analyst suggests that buying Bitcoin at prices near $20,000 would be a wise decision but advises considering both sides of the market before making any decisions, as the bearish argument holds substantial merit.
In terms of Bitcoin’s future, DonAlt anticipates a sideways trading environment for BTC as long as it remains within the $20,000 to $30,000 range.
The trader notes a high level of indecisiveness in the market and categorizes price levels above $30,000 as positive, those below $30,000 as indicative of choppy market conditions, and prices below $20,000 as a bargain worth considering.
At the time of writing, Bitcoin is being traded at $28,150.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
