A concerning warning has been issued for Bitcoin (BTC), which has been stuck between $31,000 and $30,000. DonAlt, closely followed by cryptocurrency investors, predicts that if a scenario he foresees in the short term comes true, the largest cryptocurrency may be at risk of collapsing.
Anonymous cryptocurrency analyst DonAlt made noteworthy statements on the TechnicalRoundup YouTube channel. The analyst stated that Bitcoin could face a value loss of up to 30% if it falls below the $30,000 level.
DonAlt pointed out that Bitcoin’s rise was driven by positive news such as spot Bitcoin exchange-traded fund (ETF) applications and the historic decision regarding XRP. However, he stated that this effect could wear off and give way to a decline, saying:
The price is higher today, and I am currently in the camp that expects much more decline in Bitcoin than yesterday. Altcoins may rise a bit now, but Bitcoin may disrupt this rise. I’m not yet completely on the side expecting a downtrend. The great thing about Bitcoin right now is that this movement started with good news. It has proven that the $30,000 level is a very strong level for Bitcoin. If we lose this support level, I think we will collapse. The market can explode downward like a nuclear bomb.
At the time of writing this article, BTC, which is trading around $30,300, indicates a 30% drop as predicted by the analyst, which would bring the price down to $21,000.
According to DonAlt, Bitcoin may slowly lose value in the next few days before the entire cryptocurrency market enters a downturn. The analyst commented, “Because the XRP news only pushed this thing up 2%. We were expecting much, much more. However, fundamentally, the rise is invalidated just 2% away. So it doesn’t cost much to take a position expecting a rise. Something inside me is telling me the price will fall. I have several reasons to be very defensive in the market. However, I predict that altcoins will gain momentum and rise a bit, even if we lose some ground in the next three, four, or five days.”
According to the analyst, as Bitcoin slowly loses value, the gradual upward movement of altcoins will lead to extremely negative situations. DonAlt believes that this is a precursor to a significant downward movement based on similar trends in the past.