DonAlt, a closely followed cryptocurrency analyst known for making big profits by capturing the rally since the beginning of the year, warned investors that bad news is about to come that will trigger a big sale in Bitcoin (BTC). Here is the analyst’s prediction for BTC.
“The Collapse Needs a Reason”
Anonymous cryptocurrency analyst DonAlt claims that the downside risk for Bitcoin and the rest of the cryptocurrency market is now greater than the downside risk caused by FTX, saying: “The downside risk is much higher now than it was six months ago. Now that memecoins are rallying and scammers are out there scamming everyone they can, there is less reason to go up. There only needs to be a reason to crash.”
According to DonAlt, Bitcoin‘s 100 percent rise from its November 2022 low is a simple bear market bounce within a macro bear market:
If you look at this move from a technical perspective, it was a sharp drop from $69,000 to $16,000 with zero bounce. If you follow some of that with the current price action, you’ll see that it can’t even get back into the old range. Ignoring my sentiment and bullish expectation, this is nothing more than a bear market rally.
While the analyst believes that Bitcoin has not yet crossed into the bull territory, he is very confident that $16,000 is the bottom for the current bear cycle:
I’m in the camp that still believes the bottom is in sight, and prices near $20k are a great buying opportunity. I think it makes sense to look at both sides of the coin before making a decision, and I have to say that for the moment it is much better to defend the bear argument and take a position accordingly.
Striking Bitcoin Commentary by Analyst
Sharing his view on Bitcoin specifically, DonAlt stated that he expects the largest cryptocurrency to probably move sideways as long as it is stuck between $20,000 and $30,000, while listing the important levels and level ranges as follows:
I can’t remember the last time Bitcoin did so many somersaults. In fact, my approach to price movements is very simple: Above $30,000 is a good sign. Below $30,000 means chopping, and below $20,000 is a buying opportunity zone.
