A Crypto Trader Issues a Warning About Bitcoin’s Current Position
A trader who accurately predicted the crypto market’s rally earlier this year is now cautioning that Bitcoin (BTC) is in a precarious position, despite breaking resistance at $30,000. The pseudonymous trader, known as DonAlt, believes that Bitcoin needs to close the week above the $32,290 mark to confirm the bullish breakout.
If Bitcoin fails to do so, DonAlt warns that it could be a sign of a big bull trap. He emphasizes the importance of sticking the landing after the recent surge and acknowledges the increased danger in the current situation.
Bitcoin’s Bull Territory and Potential for ETF Hype
According to DonAlt’s chart analysis, BTC is considered to be in a bullish territory as long as it remains above $32,290. At the time of writing, Bitcoin is trading at $33,838.
The trader also believes that many people are underestimating the potential impact of a spot market exchange-traded fund (ETF) for Bitcoin. DonAlt suggests that if retail investors start jumping on the Bitcoin ETF bandwagon, it could provide further bullish momentum for the cryptocurrency.
Predictions for Bitcoin’s Price with a Spot-Based ETF
Last week, DonAlt made a prediction that if US regulators approve a spot-based Bitcoin ETF, Bitcoin could potentially surge to at least $60,000. However, he clarifies that this target may not be achieved in the short term but represents an upper-end estimate.
Hot Take: The Importance of Confirming Bitcoin’s Breakout
While Bitcoin has recently broken through resistance at $30,000 and is currently trading above $32,290, it is crucial for BTC to close the week above this level to confirm the bullish breakout. Failing to do so could indicate that the rally was a trap. Furthermore, the potential impact of a Bitcoin ETF on the market cannot be underestimated, as it may provide additional bullish momentum for the cryptocurrency. Overall, cautious optimism is advised as Bitcoin enters a potentially dangerous phase.
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