Bitcoin’s Bullish Momentum in Question: Analyst Cautions on Potential Bearish Shift
A well-known strategist recognized for accurately predicting the Bitcoin (BTC) bottom in November 2022 has highlighted three reasons why the popular cryptocurrency might enter a bearish phase.
The analyst, operating under the pseudonym DonAlt, shared insights with his Twitter followers, expressing a cautious belief that Bitcoin is poised for a collapse.
According to DonAlt, a sense of unease arises from various factors, including the prolonged period it is taking for Bitcoin’s value to rise, the resistance encountered by the S&P 500 index, and concerning market behavior.
However, DonAlt acknowledges that personal perspectives may not always align with market realities, as they are not actively involved in trading and have not closely monitored recent market trends. Hence, to maintain objectivity, DonAlt plans to focus on analyzing the technical indicators, which currently suggest a neutral stance.
Expanding on their bearish outlook, DonAlt explains in a video titled “Technical Roundup” that the introduction of spot Bitcoin exchange-traded funds (ETFs) by major Wall Street firms, notably BlackRock, should have already stimulated a positive market response. The absence of such a rally raises concerns for DonAlt.
READ MORE: Bitcoin’s Price Puzzle: A Squeeze on the Horizon?
DonAlt emphasizes the importance of Bitcoin’s support level at $29,000 to avoid a significant correction. The cryptocurrency must maintain this level to sustain a favorable outlook. A close below $29,000 would raise concerns and potentially indicate a negative trend.
In the event that Bitcoin loses its support at $29,000, DonAlt speculates that a gradual decline in its value may occur. At the time of writing, Bitcoin is being traded at $31,360.
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.
