A trader who joined the crypto rally earlier this year says he remains on the sidelines now that Bitcoin has given up all of its gains fueled by BlackRock’s application for a spot-based BTC exchange-traded fund.
In a new strategy session, DonAlt tells his 52,900 YouTube subscribers that the latest Bitcoin correction that brought BTC below $26,000 is a sign that the bears have taken control of the market.
“From a trading perspective, when I look at this weekly candle, we’ve recovered the whole ETF BlackRock story.
There’s a reason why I was bullish on $16,000, and the reason is that FTX blew up, the price fell, and then we got more and more bad news and nothing happened. Price just slowly went up.
What we have now is we’ve had some stupid good news over the last few weeks to months and the price has moved up and completely recovered that. And that’s a sign of weakness for me from a trading perspective. It doesn’t really make much sense to position myself bullish given where we’re trading right now. We are trading all the way back at levels that I think we shouldn’t have touched.”
According to DonAlt, his time on the sidelines will be cut short if Bitcoin manages to reclaim $30,000 or collapse all the way to $18,950.
“That’s why I felt uncomfortable offering blind support. The market is simply too weak for that. Now that we’ve fully followed the BlackRock ETF news, I’ll be even more defensive. Good news, $30,000+ or a complete meltdown are the only ways to get me back into this.
The crypto strategist also looks at investor sentiment following the most recent correction. He notes that traders appear to be bullish on altcoins, which tells him that it is not yet time to jump back into the crypto markets.
“[The] the first thing people seem to be interested in after a two-month consolidation broke to the downside is… buying alts. Personally, I prefer to buy when people are terrified and sell their alts after nukes, not when they buy.
At the time of writing, Bitcoin is trading at $25,945.
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Image generated: Midway through the journey