A trader who experienced the crypto rally earlier this year warns that Bitcoin bulls could fall victim to a trap if a spot-based BTC exchange-traded fund (ETF) gets the go-ahead from regulators.
In a recent strategy session, pseudonymous analyst DonAlt tells his 53,000 YouTube subscribers that sellers are likely to view the approval of a Bitcoin ETF as an opportunity to offload their BTC holdings.
“The ETF was not denied, but we still went all the way back to where it was announced. So either you get the biggest discount of all time here, or we get bad news.
I’m 50/50 on it, but I don’t like the weakness. So even if we get an ETF, given the recent weakness, there’s a chance we’ll just go to $32,000 to $35,000. This is crypto-specific weakness, and people are very willing to sell. It could be that people are just starting to sell for $32,000, $34,000 [or] $35,000 if we get that [an] ETF approved.
If we get denied, I think we go to $20,000 – $19,000.”
In the event that Bitcoin goes through a full bull run after an ETF is approved, DonAlt says BTC bulls will have a chance to reload their positions.
“Even if we say we’re up and go to $35,000 and I sell and it just goes vertical, I think we’re going to retest that on a pullback, and then I can just get back in.”
At the time of writing, Bitcoin is worth $26,062.
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