Crypto analyst DonAlt, who made significant gains by effectively managing Bitcoin‘s (BTC) rally earlier this year, has issued a warning that the crypto king’s rally may be nearing its end, despite extremely positive developments in the market.
Anonymous crypto analyst DonAlt believes that despite all the positive news that has fueled the resurgence of the crypto market, Bitcoin’s inability to make the expected breakout will likely result in a downturn.
DonAlt stated that if Bitcoin falls below $30,000, it will disregard the applications for spot Bitcoin exchange-traded funds (ETFs) from major companies, the positive remarks made by BlackRock CEO Larry Fink, and Ripple’s partial victory in the lawsuit filed by the U.S. Securities and Exchange Commission (SEC), and said:
If we lose the $30,000 support, everything ends. If the price falls below and closes below on a weekly time frame, the announcement of Europe’s first spot Bitcoin ETF, Ripple’s partial victory in the SEC’s lawsuit, BlackRock’s attempt to obtain approval for a spot Bitcoin ETF from the SEC, BlackRock CEO Larry Fink openly trying to boost BTC, and many other positive news, if none of these news can boost Bitcoin, then what news will? Bulls need to take a big step from here, otherwise I will start to think that seeing $20,000 again is not impossible.
DonAlt stated that for Bitcoin to maintain its strength and have the possibility of reaching new highs, it must close above $33,000 on a weekly time frame, otherwise a sharp drop may occur with a candlestick closing below the $29,500 level. He said:
The situation seems complicated here, both bulls and bears seem to have a chance. Candlestick closes below $29,500 will look bad. BTC needs to maintain the momentum it has gained with ETF applications. Candlestick closes above $33,000 will intensify the rise in Bitcoin with the effect of ETF news. Candlestick closes above $33,000 could take us to all-time highs.
The Bitcoin chart shared by the analyst shows that if the price surpasses $33,000, it is likely to move towards $58,000. On the other hand, looking at the chart, it is noticeable that if the Bitcoin price falls below $29,500, it could potentially drop to around $25,000, $21,800, and even around $19,000.