An analyst who correctly called Bitcoin’s 2022 market bottom is warning that the BTC correction is likely not yet over.
Pseudonymous analyst DonAlt tells his 529,900 followers on the social media platform X that he thinks BTC bears are in full control of the market as long as Bitcoin is trading below a key level.
“Above red box ($71,000-$73,000) giga bull continues.
Above red line ($68,500) is a bit of a toss-up.
Below the red line assuming down.
Now that the daily [candle] closed, there is technically a short setup on the monthly, weekly, and the daily timeframe. Bears got a chance but will they take it?”
Looking at the trader’s chart, he seems to suggest that the closest support level for Bitcoin is at $62,000.
At time of writing, BTC is trading for $62,156, down more than 8% in the last 24 hours.
With the Bitcoin correction in play, DonAlt says BTC bulls are trying to catch the bottom of this downside move, which he thinks will ultimately result in more pain, especially for those using leverage.
“This is bulls trying to buy ‘the bottom’ aggressively on leverage while price clearly gravitates lower At some point they’ll be right but there is a lot of bloodshed along the way.”
The top trader also warns that investors exposed to Bitcoin through spot market BTC exchange-traded funds (ETFs) may not be used to the volatile nature of crypto assets.
“Gonna be really interesting to see how the ETF folks react to this down move. They’re not used to the ups and downsides that crypto has to offer.
Takes mental illness to take double-digit percentage losses in a day and not lose faith. We have it, do they…?
It’s easy to diamond hand stonks, they’ve been around for a while. Holding worthless internet money takes much more balls.”
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