A top crypto analyst is predicting that Bitcoin (BTC) is at risk of collapsing if one scenario plays out in the near term.
Pseudonymous analyst DonAlt tells the 52,300 subscribers of the TechnicalRoundup YouTube channel that Bitcoin is looking at a decline of up to 30% if it loses the key $30,000 level.
He notes that Bitcoin rallied on the positive news of Bitcoin spot exchange-traded fund (ETF) applications and the historic XRP ruling, but that impact may wear off and send BTC plunging.
“Price is higher than it was yesterday. And I’m much more bearish now than I was yesterday on Bitcoin.
Now the altcoins could get a little bit of a tailwind and the Bitcoin thing could get invalidated. I’m not necessarily bearish yet. In general, the cool thing with Bitcoin right now is that basically, this move started off of good news, one, and off of $30,000, a strong, strong level that is just very obvious to see, $30,000 round number, $30,000 just feels like a good number.
And I think if we lose both, basically if we lose the news impact and we lose the $30,000 psychological level, I think this is going to collapse – like proper nuke level as in you get like 10%, 20%, 30% down pretty much almost immediately.”
A 30% drop from Bitcoin’s current price of $30,307, would bring BTC to around the $21,000 level.
According to DonAlt, Bitcoin may slowly decline in value over the next few days before the entire crypto markets turn bearish.
“Because this news just pushed this thing up 2%. You would expect much, much more. But basically, bullish invalidation is 2% away. And so it doesn’t cost too much to be bullish.
Gut feeling of mine still feels like down. I have a few reasons why I’m very, very defensive in the market. But I think altcoins could carry over a little bit of momentum even if we just bleed out the next three, four or five days we could still have a bit of altcoin action.
But that would be the worst combination honestly. If you get altcoin action, while Bitcoin bleeds this news event out, that’s the most bearish it could be…
Any full retraces of this news event will be very, very bearish. And that means that you can be bullish until it actually happens.”
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