Experienced cryptocurrency analyst DonAlt has advised investors to prepare for a potential drop in Bitcoin (BTC) as the largest cryptocurrency has been unable to break above a significant resistance level for months.
DonAlt: Bitcoin is Quite Weak
Anonymous cryptocurrency analyst DonAlt, although stating that he has not opened any short positions in the largest cryptocurrency, has expressed his expectation of a major drop in Bitcoin. DonAlt pointed out that one of the reasons for the expected drop is that while stock markets around the world are showing strength, BTC has failed to surpass the resistance level just below $32,000, saying:
We have tested and failed to break the resistance around $31,500 multiple times so far. Then Bitcoin failed to move up and remained weak. This was also the case when the S&P 500 index showed strength. So, the weakness in the markets is not just a global phenomenon. The S&P 500, Nasdaq 100, and even the German stock index DAX have essentially reached their all-time highs. The French index CAC 40 has done the same. Several European stock exchanges have also risen, returning to their all-time highs. Bitcoin, on the other hand, couldn’t even come close to its record level. This basically shows that Bitcoin is quite weak.
According to the Analyst, the Opposite Will Happen in 2022
DonAlt, stating that the downward trend in Bitcoin while positive news flow is present is cause for concern, referred to 2020 as an example and said:
None of the rising news, stories, and claims worked. The argument I based my reference for buying Bitcoin at $15,000 and $16,000 was that “Hey, we should have gone to zero around $15,500 because FTX crashed, a group of big players crashed, everything went to zero, this market should have been trading from zero,” but that didn’t happen. We received numerous bearish trigger news at the bottom level of 2022, and the price didn’t move. On the contrary, the price started to rise. Now I’m using the same argument here. After the bullish news, we received bullish news again, and this time the price won’t rise, it will fall. Therefore, I am on the side that expects a further drop.
Bitcoin is currently trading at $29,181, recording a 0.21% increase in the last 24 hours. CoinMarketCap data shows that the largest cryptocurrency has dropped by 0.28% in the past 7 days and 6.02% in the last 30 days.
