A trader who caught the crypto rally earlier this year says that he’s staying on the sidelines now that Bitcoin has given up all its gains sparked by BlackRock’s application for a spot-based BTC exchange-traded fund.
In a new strategy session, DonAlt tells his 52,900 YouTube subscribers that the latest Bitcoin correction that drove BTC below $26,000 is a sign that the bears have taken control of the market.
“From a trading perspective, when I look at this weekly candle, we retraced the entirety of the ETF BlackRock narrative.
There’s a reason why I was bullish at $16,000, and the reason is FTX blew up, the price nuked, and then we got more and more bad news and nothing happened. Price just slowly walked up.
Now what we have is we got stupidly good news over the last few weeks to months and the price went up and fully retraced that. And that’s a sign of weakness to me from a trading perspective. It doesn’t really make much sense to position myself bullishly given where we’re trading right now. We’re trading all the way back at the levels that we, in my opinion, shouldn’t have touched again.”
According to DonAlt, his time on the sidelines will be cut short if Bitcoin manages to reclaim $30,000 or collapses all the way down to $18,950.
“This is why I felt uncomfortable bidding the support blindly. The market is just too weak for that. Now that we’ve fully retraced the BlackRock ETF news I’ll be even more defensive Good news, $30,000+ or a full-blown collapse are the only ways to get me back in this.”
The crypto strategist is also looking at trader sentiment following the most recent correction. He notes that traders appear to be bullish on altcoins, which tells him that it is not yet time to jump back into the crypto markets.
“[The] first thing people seem to be interested in doing after a consolidation of two months broke to the downside is… buying alts. I personally prefer buying when people are scared sh*tless and sell their alts after nukes not when they buy.”
At time of writing, Bitcoin is trading for $25,945.
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