A trader who rode the rally in the broader crypto markets earlier this year is warning that Bitcoin (BTC) is in a precarious position even after taking out resistance at $30,000.
Pseudonymous trader DonAlt tells his 509,700 followers on the social media platform X that Bitcoin needs to end the week above the $32,290 price level in order to confirm the bullish breakout.
According to the analyst, BTC is in a dangerous position because a weekly close below the key price area would indicate that the rally is a big bull trap.
“If this week goes well, we’ll be back boys I was vocally and aggressively bullish the last few days because you could just tell it was gonna blow the lid off. Now that we have, we actually have to stick the landing. I’m optimistic, but this is where it gets more dangerous.”
Looking at DonAlt’s chart, it appears that he thinks BTC is in bull territory as long as it is hovering above $32,290.
At time of writing, Bitcoin is trading for $33,838.
The analyst also thinks that people are still sleeping on the idea that a spot market exchange-traded fund (ETF) is on the horizon for Bitcoin. DonAlt says that Bitcoin will likely gather more bullish steam if retail investors hop on the Bitcoin ETF bandwagon.
“The best part about all of this is we’re still not even in the ETF hype phase. We’re just in the ‘A few people know we’ll get an ETF and are trying to front-run’ phase It’ll be so much fun when people pick up the ETF narrative completely.”
Last week, DonAlt predicted that Bitcoin could soar to at least $60,000 once US regulators greenlight a spot-based Bitcoin ETF.
“I think $60,000 is a reasonable target if we get the ETF. Now obviously not in the short term, but that’s kind of where I think this could go. I think between $60,000 and $100,000 is the upper end.”
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