A top trader who rode the crypto rally early this year reveals his outlook for Bitcoin, as market participants eagerly await the possible adoption of BTC exchange-traded funds (ETFs) in the spot market.
Crypto analyst DonAlt tells his 55,600 YouTube subscribers that the adoption of a spot-based BTC ETF will likely lead to greater volatility in BTC.
According to the crypto strategist, it is within the possibilities for BTC to briefly recover once the announcement is made, and then correct massively in the following days.
“Let’s just say the halving and the ETF can turn this thing bullish. Even if that is the case, I think the news will be a sell-the-news event.
You could just wick, like maybe we wick to the top of the ETF announcement towards $45,000, $46,000, $47,000, maybe $48,000, something like that. And then I could see a weekly wick of 10%, 20% or 30% at the bottom that’s actually getting eaten, and then you go up.
That’s the most bullish thing I could see happening. I think that’s still quite unlikely, given that it will be a while before the ETF really takes off.”
While DonAlt expects a deep correction after the US Securities and Exchange Commission (SEC) greenlights BTC ETF applications, he thinks the companies behind the investment vehicle will drive the next Bitcoin push.
“The only counterargument I can make to that is actually that it seems a bit stupid for all these companies like BlackRock if they announce an ETF and then Bitcoin just disappears.
So you could argue that they’re just going to buy a lot to keep this thing from looking like a complete joke.”
In November, Bloomberg analyst James Seyffart said the SEC could clear the way to approve multiple Bitcoin ETFs in January.
Bitcoin is trading at $43,844 at the time of writing.
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Featured image: Shutterstock/David Sandron/Danilo Sanino