Leading Trader's Analysis: Hesitation on Bitcoin After Recent Retracement

A prominent cryptocurrency trader, who had previously capitalized on the crypto surge, has expressed reservations about Bitcoin’s current market position. This comes after Bitcoin erased all the gains it had made following the news of BlackRock’s intention to launch a spot-based Bitcoin ETF. During a strategy discussion with his substantial YouTube audience of over 52K, DonAlt conveyed his concerns about Bitcoin’s recent dip below the $26,000 mark, interpreting it as a bearish takeover.

As you may remember, on 15 June 2023, The iShares unit of fund management giant BlackRock (BLK) filed paperwork Thursday afternoon with the U.S. Securities and Exchange Commission (SEC) for the formation of a spot bitcoin (BTC) ETF.

According to data from TradingView, on 14 June 2023, Bitcoin was trading as low as $25,127. By 13 July 2023, the day Judge Torres delivered her ruling in the SEC v. Ripple Labs case, the Bitcoin price was as high as $31,472. At the time of writing, Bitcoin is trading at around $26,124, up 0.05% in the past 24-hour period.

DonAlt reminisced about his bullish stance when Bitcoin was at $16,000, attributing it to a series of negative events that surprisingly didn’t affect the coin’s upward trajectory. However, he expressed alarm at the recent scenario where Bitcoin’s price surged despite receiving a series of positive news and then completely retraced. He emphasized that such behavior indicates market weakness, making him hesitant to adopt a bullish position at the current trading levels. He believes that these levels should have remained untouched.

The trader further stated that he would reconsider his neutral stance only if Bitcoin either surges past the $30,000 mark or plunges to as low as $18,950. He expressed his discomfort in blindly supporting the current market, especially after the complete retraction of the gains from the BlackRock ETF news.

Additionally, DonAlt is closely monitoring the general trader sentiment post this correction. He observed a growing bullish sentiment towards altcoins, which, to him, signals that it might not be the opportune moment to go long Bitcoin. He candidly shared his preference for buying when the market is dominated by fear and selling altcoins after significant drops rather than when they are being actively purchased.

https://youtube.com/watch?v=V_x2B01BY0w%3Ffeature%3Doembed

Source: Read Full Article