A trader who masterfully managed the crypto breakout earlier this year is warning that the current price action of Bitcoin (BTC) is reminiscent of its brutal downward trend last year.
In a new strategy session, crypto analyst DonAlt tells his 52,600 YouTube subscribers that Bitcoin bears appear to be in complete control.
According to the cryptocurrency strategist, sellers are seeing good news-fueled rallies as opportunities to offload BTC.
“There is only weakness. Every time we get a move higher… you get a huge oversized candlestick that just wipes that out completely, and it has been the story ever since we entered this range. You get a nice event, and then you get a bigger candle that completely negates it.”
DonAlt also says that he is comparing the movement of Bitcoin to the stock market. The trader notes that Bitcoin’s lackluster performance every time the stock market rises reminds him of last year’s cryptocurrency bear market.
“Rhode IslandNow the price action is more bearish than bullish. Every time the S&P (500) goes down, cryptocurrencies go lower and every time the S&P goes up, Bitcoin just doesn’t do anything. We’ve seen it before, basically from $60,000 to $15,000, we had that kind of relationship between the two of us, where we’d just stop when the S&P was doing well and nuke when it was bad.
The return of that I’m not a big fan.
While DonAlt says that BTC is showing multiple signs of weakness, he notes that Bitcoin can still pick up some momentum if it moves above a certain level.
“The good thing is that if you look at the daily time frame, there is at least one way to get into this hard, which would be a move above $30,700. I think if we move above the high range, and to me that’s the high range, I could argue that, ‘Okay, this was all bullshit,’ but we’re pretty far from it.”
At the time of writing, Bitcoin is worth $29,242.
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