A veteran crypto strategist issues a dire warning about Bitcoin, saying BTC is in danger of plummeting to the $50,000 price level.
In a new video update, pseudonymous analyst DonAlt tells his 62,500 YouTube subscribers that a weekly Bitcoin close below $70,000 opens the door to another round of sequential liquidations for BTC.
DonAlt believes that Bitcoin’s recent surge above $70,000 is driven by paper traders looking to make a quick buck in the event of a Trump victory. But the analyst warns that their positions will likely be liquidated if BTC struggles to continue its rally.
“I think there are a lot of people who have added some positions by betting on Trump, and if the market goes down, I think they are all in danger.
I think there are a number of people who are actually in a position that isn’t necessarily, “Hey, I want to own crypto for the sake of it.” They want to own crypto because they think it will rise because Trump will win.
I think this is a dangerous position, especially when I think the chances are 50/50 or maybe 55/45 that Trump wins…
There are a lot of people in positions that could easily be flushed out, so I take that signal very seriously. If we get weakness here, if this completely reverses on a weekly basis [and] close red, something like that would be a pretty strong signal for a downtrend.
And I don’t think it’s necessarily going to stop in the mid-$60,000s. I think we could go to the lower $60,000s then, if we don’t go back to $50,000.”
At the time of writing, Bitcoin is trading at $69,379, slightly below the trader’s key level of $70,000.
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