A trader who expertly participated in this year’s crypto rally says he has significantly reduced his exposure to the digital asset markets after Bitcoin’s (BTC) price drops in recent days.
In a new strategy session, analyst DonAlt tells his 50,900 YouTube subscribers that Bitcoin’s correction from about $28,500 to about $27,000 last week was his signal to exit the crypto markets.
The crypto strategist says Bitcoin’s current market structure gives him no reason to be bullish on BTC.
“I took quite a bit of risk in the market, which basically meant taking a small loss for Bitcoin, a big win for Litecoin, and a pretty big win for XRP as well.
I still have a little bit but I’ve taken significantly less risk just on the basis that even if you make the argument that it’s just chopping and you can ignore it I don’t have a good technical reason to put more into Bitcoin to sit.”
DonAlt also says that while his Litecoin (LTC) and XRP holdings were profitable, he noted that Bitcoin’s weakness is a sign that the recent rally in the altcoin markets is likely to be short-lived.
“I have taken advantage of the altcoins, which, as I said at the beginning of the show, make me nervous every time. If I’m technically wrong with Bitcoin, but I’m still making money with altcoins, then I’m shocked, because usually the altcoins do well or better at the end of a rally.
He also highlights that Bitcoin has been trading largely sideways in recent weeks, even as the stock market has shown significant strength.
“Let’s face it, the S&P has worked wonders over the past week. We’ve had a lot of strength and it hasn’t just flown in Bitcoin.
All of that just has me disinterested.
DonAlt concludes that he would rather stay on the sidelines than give back all of his recent altcoin gains.
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Featured image: Shutterstock/Tithi Luadthong