A top trader is issuing a warning on Bitcoin (BTC) amid the flagship crypto asset’s failure to break above a key resistance level for months.
The analyst pseudonymously known as DonAlt tells his 52,700 subscribers that he is “already very, very bearish” on Bitcoin even though he doesn’t have short positions on the flagship crypto asset.
DonAlt says that one of the reasons informing his bearish sentiment is that Bitcoin has failed to climb above the resistance level at slightly below $32,000 while stock markets around the globe have demonstrated strength.
“So far we’ve gotten two tests of this level [around $31,500] and we’ve been failing. [Bitcoin] has not been able to push up, it’s been weak.
And that has been the case while the S&P [stock index] has been strong. So it’s not necessarily just a global phenomenon that markets are weak. The S&P and the Nasdaq and even the German stock index, the DAX, basically went to an all-time high.
Same with the French one [CAC 40]. Same with a bunch of European ones, they all went back to the all-time high. Bitcoin didn’t get close. This was just basically Bitcoin weakness.”
According to DonAlt, the fact that Bitcoin is trending lower amid a positive news environment is also a cause for concern.
“The news (stories) that have been bullish have not been doing anything…
When I was buying [Bitcoin at] $15,000, $16,000 my whole argument was basically, ‘Hey, we should have gone to zero here [around $15,500] because FTX imploded, a bunch of bigger players imploded, everything went to zero, this market should be trading at zero. It’s not.’
We got unlimited bearish news down here [at the 2022 bottom] and price did not budge. Price started grinding up…
And now I’m making the same argument up here. We’ve had bullish news after bullish news and we’re just grinding up here. And in fact, we’re bleeding lower.
So instead of like doing what we did here [2022 Bitcoin bottom], where we just kind of started grinding up, what we’re doing here is we started grinding lower and we’re losing supports.
And that’s not something I like to see. At least not when I want to hold. So for all those reasons, I’m a little bit more on the bearish side.”
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