A trader who masterfully rode the crypto breakout earlier this year warns that Bitcoin’s (BTC) current price action is reminiscent of its brutal downtrend last year.
In a new strategy session, crypto analyst DonAlt tells his 52,600 YouTube subscribers that Bitcoin bears appear to be in full control.
According to the crypto strategist, sellers are seeing rallies driven by good news stories as opportunities to unload BTC.
“There’s just weakness. Every time we have a bullish move… you get a big outsized candle that just completely erases that, and it’s been the story ever since we’ve entered this range. You get a good event, and then you get a bigger candle that completely negates it.”
DonAlt also says that he is comparing Bitcoin’s movement to the stock market. The trader points out that Bitcoin’s lackluster performance every time the stock market rallies reminds him of last year’s crypto bear market.
“Right now the price action is more bearish than bullish. Every time the S&P (500) goes down, crypto goes down harder, and every time the S&P goes up, Bitcoin just doesn’t do anything. We’ve seen that before, basically all the way from $60,000 to $15,000 we had that kind of relationship between the two, where we just would stall whenever the S&P would do well and the nuke whenever it was doing poorly.
The return on that I’m not a big fan.”
While DonAlt says that BTC is flashing multiple signs of weakness, he notes that Bitcoin can still regain some momentum if it moves above a certain level.
“The cool thing is that if you look at the daily timeframe, there’s at least a way to get into this thing on strength, which would be a move above $30,700. I think if we move above the range high, and for me that’s the range high, you could make an argument that, ‘Okay, this was just all bu****it,’ but we’re pretty far from that.”
At time of writing, Bitcoin is worth $29,242.
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