Crypto analyst and trader DonAlt, who predicted and positioned himself before the rally at the beginning of the year, resulting in significant profits, claimed that the crypto market could collapse if a financial trend occurs.
Short-Term Outlook of the Crypto Market Depends on the S&P 500
Anonymous crypto analyst and trader DonAlt, stating that he closely monitors the performance of the S&P 500 index, said that if the stock index shows signs of a slowdown, there will likely be a significant correction in Bitcoin (BTC) and altcoin markets, and he stated the following:
The problem with the crypto market not rallying while stocks rally is that when stocks stop rallying, cryptocurrencies collapse. That’s exactly what’s happening now. Bulls should pray for the S&P 500 to resume its upward momentum because if it doesn’t, the crypto market will collapse sharply.
Warning Signs for Bitcoin
DonAlt, looking at Bitcoin, believes that the largest cryptocurrency can show some strength if it breaks above the key level of $30,000, but he continues to be disappointed by the bulls. He explained, “I’m still watching $30,000 for the first signs of bull strength, but the bulls continue to disappoint. $27,000 is a support level, but not a level where you can buy without thinking. I prefer to wait until bulls gain momentum. Nothing has changed; we are still in a downtrend.”
The analyst pointed out that Bitcoin’s recent price action indicates that it will likely move downward after retesting the $29,000 resistance. He said, “Before bears get trapped, bulls got trapped, and this compression ended with a retest of the downtrend. As long as daily candle closes are below $30,000, I will expect more downside than upside. I will continue to wait until the next announcement.”
The largest cryptocurrency BTC is currently trading just below $29,000, with a 0.81% decrease in the last 24 hours, at $28,982.
