Cryptocurrency analyst DonAlt, known for his predictions and evaluations that foresaw the rise of the cryptocurrency market at the beginning of the year, shared a potential scenario to return to the market. The experienced analyst once again revealed what he has been waiting for to buy Bitcoin (BTC).
Cryptocurrency analyst DonAlt stated that Bitcoin looks weak. According to the analyst, the delay in the approval of spot-based Bitcoin exchange-traded funds (ETFs) was something investors were already expecting, but BTC still experienced a drop after the news. In his evaluation of this situation, the analyst said:
The price movement was quite bad. We received a lot of good news and predictably bad news, and although the bad news did not have as much impact as the good news, it created more influence. Considering the predictability of the bad news, which was the postponement of all ETFs, everyone knew it would happen.
Given this, it is quite surprising to see such a sharp drop, and even if there is a drop considering all these were expected, we would recover quickly because it’s an absurd drop since the news was already known. You would think that this drop would reverse quite quickly, but so far it hasn’t, which shows me that the market is still weak. There is not enough strength.
DonAlt stated that a downward sharp price movement in the middle of Bitcoin’s struggle to regain its upward trend would lead to re-entering the market. He said, “If there is a sharp drop this month, I may be interested in buying again. If there is a minor drop like before, it would mean ‘no, stop, wait’ for me.”
The strong liquidation event that the analyst expects helps to clear out highly leveraged traders, which can prepare Bitcoin for a bounce or continuation of the uptrend. According to CoinMarketCap data, Bitcoin is currently trading at $25,693, with a 1.07% decrease in the last 24 hours.