Bitcoin (BTC), known for predicting its 2022 bottom levels in advance, has prominent analyst DonAlt addressing investors and warning that the largest cryptocurrency’s current correction may not be over yet. The analyst stated from his personal X account that if Bitcoin remains below a key level, bears could continue to dominate the market.
Key Level at $62,000
According to DonAlt, as long as Bitcoin trades below the key level represented by the red box between $71,000 and $73,000, it cannot capture a true upward momentum. The analyst also highlighted another critical level around $68,500, noting that Bitcoin’s price movement above or below this level could determine its short-term direction. DonAlt added that various time frame technical indicators, including monthly, weekly, and daily, point to a bearish outlook for Bitcoin.
With current data, Bitcoin has seen a 2.84% decrease in the last 24 hours, trading at $62,526. DonAlt pointed to $62,000 as the nearest support level for Bitcoin, suggesting that if the price falls below this, further potential declines could be seen.
DonAlt warned that current market conditions could cause more pain for Bitcoin bulls, especially those trading with leverage. Despite the price decline, bulls are aggressively attempting to catch the bottom of the downward movement. The analyst underlined that bulls could eventually be right, but this journey could lead to significant losses, especially for leveraged investors.
Spot ETF Investors May Face Challenges
DonAlt also expressed concerns about investors who are not accustomed to high volatility in cryptocurrencies and invest in Bitcoin through spot exchange-traded funds (ETFs).
He questioned whether Spot ETF investors have the mental fortitude to withstand double-digit percentage losses in a single day. He warned that their inability to endure the high volatility of cryptocurrencies compared to traditional stocks and hold on during downturns could exacerbate the decline.
