A trader who masterfully rode the crypto rally this year is warning 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 is facing multiple headwinds as it struggles to get above a key psychological level.
According to DonAlt, Bitcoin’s momentum appears to have tapered off 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 an ongoing U.S. Department of Justice (DOJ) probe.
“I’ve been talking about this for like a month ever since we basically hit $4,300 – 4,200 on the S&P (500). The problem is we ran into S&P resistance, and I could see that (slowing) down the traditional markets.
So if you’re struggling after having such a big catalyst like the ETF application from BlackRock, if that is counteracted by the S&P just going risk off a little bit and then you have some more Binance problems, I could see that be quite explosive and quite bad…
It’s taking too long. We have a bunch of risky things in the market, and the S&P is at resistance.”
Although DonAlt says he’s starting to be cautious on BTC, he highlights that he’s still bullish on the crypto king and that any dips would be opportunities to accumulate more Bitcoin.
“But just at face value, you look at the weekly (chart) and that’s not a bad chart. So I wouldn’t necessarily tell people, ‘Hey this is where you 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 be buying this. And if we go high, you want to be buying the first retrace. So I’m still team bull, but I think it makes sense to be a little bit cautious in between $30,000 and $32,000.”
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Source: https://dailyhodl.com/2023/07/09/explosive-and-risky-developments-coming-for-bitcoin-warns-trader-who-caught-2023-crypto-rally/