Analyst Warns Bitcoin Bulls of More Pain Ahead Amid Crypto Correction
An analyst who accurately predicted Bitcoin’s market bottom in 2022 is now cautioning that the correction for BTC may not be over yet. Pseudonymous analyst DonAlt believes that as long as Bitcoin remains below a key level, bears will continue to dominate the market.
According to DonAlt, if Bitcoin stays below the red box ($71,000-$73,000), the bearish trend will persist. If it manages to rise above the red line ($68,500), there is some uncertainty regarding its direction. However, assuming it falls below the red line, the outlook is bearish.
Looking at DonAlt’s chart, it appears that $62,000 is currently the closest support level for Bitcoin. As of now, BTC is trading at $62,156, experiencing an 8% drop in the last 24 hours.
Bulls Attempting to Catch the Bottom
DonAlt suggests that BTC bulls are trying to catch the bottom of this downside move but warns that it will likely result in more pain, particularly for those using leverage. He highlights that buying on leverage while prices are declining can lead to significant losses along the way.
The top trader also raises concerns about investors exposed to Bitcoin through spot market BTC exchange-traded funds (ETFs). He questions how they will react to this downward movement and whether they are prepared for the volatility inherent in crypto assets.
DonAlt believes that holding onto traditional stocks is easier because they have been around for a longer time and have established value. On the other hand, holding onto cryptocurrency requires more courage and conviction.
Hot Take: Brace Yourself for More Turbulence
The recent correction in the crypto market has left Bitcoin bulls on shaky ground, and according to DonAlt, there may be more turbulence ahead. While the analyst correctly predicted the market bottom in 2022, he suggests that the current correction is not yet over.
With Bitcoin struggling to surpass key resistance levels and experiencing a significant drop in value, bears are currently in control. DonAlt’s cautionary outlook serves as a reminder that the crypto market can be highly volatile and unpredictable.
Disclaimer: The information provided here does not constitute investment advice or financial advice of any kind. Consult your financial advisor before making any investment decisions.
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