A trader who accurately called the crypto rally earlier this year is warning that digital assets may collapse if one financial trend occurs.
Pseudonymous analyst DonAlt tells his 500,200 Twitter followers that he’s keeping a close watch on the performance of the S&P 500.
According to DonAlt, Bitcoin (BTC) and the broader crypto markets will likely witness a serious correction if the stock market flashes signs of bullish exhaustion.
“The problem with crypto not rallying when stocks are rallying is that once stocks stop rallying, we get f*cked.
And that’s exactly what’s happening right now. Bulls better pray to god the S&P just goes up-only mode because if it doesn’t, crypto nukes proper.”
Looking at Bitcoin, DonAlt says that BTC could show some semblance of bullishness if it manages to recover the key psychological level of $30,000.
“BTC update: Still watching $30,000 for the first signs that bulls haven’t been neutered but the bulls keep disappointing.
$27,000 is support but not good enough for me to blind bid, I’d rather just wait until we get some bull momentum back.
As in nothing changed, still bearish.”
For now, DonAlt believes that Bitcoin’s recent price action indicates BTC will likely see more downside moves after retesting $29,000 as resistance.
“BTC update: squeezed some bulls before squeezing bears ending in a bearish retest. As long as we’re closing sub-$30,000, this is still much more bearish than bullish. Still sitting on my wings until further notice.”
Bitcoin is trading for $29,019 at time of writing, down 0.9% in the last 24 hours.
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