A top trader is issuing a warning about Bitcoin (BTC) amid the flagship crypto asset’s months-long failure to break above a key resistance level.
The analyst pseudonymously known as DonAlt tells his 52,700 subscribers that he is “very, very bearish” on Bitcoin, even though he has no short positions on the flagship crypto asset.
DonAlt says one of the reasons for his bearish sentiment is that Bitcoin has failed to climb above the resistance level just below $32,000, while stock markets around the world have shown strength.
“So far we have had two tests of this level [around $31,500] and we failed. [Bitcoin] hasn’t been able to push up, it’s been weak.
And that was the case while the S&P [stock index] has been strong. So it is not necessarily a global phenomenon that markets are weak. The S&P and the Nasdaq and even the German stock index, the DAX, just about hit all-time highs.
Same with the French [CAC 40]. Same with a bunch of Europeans, they all went back to the all-time high. Bitcoin didn’t come close. This was really just Bitcoin’s weakness.
According to DonAlt, the fact that Bitcoin is trending lower amid a positive news environment is also a cause for concern.
“The news (stories) that was bullish has done nothing…
When I was buying [Bitcoin at] $15,000, $16,000 my whole argument was basically, “Hey, we should have gone to zero here [around $15,500] because FTX imploded, some of the bigger players imploded, everything went to zero, this market should be trading at zero. It’s not.’
We have unlimited bearish news here [at the 2022 bottom] and the price didn’t matter. Price began to grind…
And now I’m making the same argument here. We’ve had bullish news after bullish news and we’re grinding here. And in fact, we bleed lower.
So instead of doing what we did here [2022 Bitcoin bottom]where we just started to grind a little bit, what we’re doing here is we started to grind lower and we’re losing support.
And that’s not something I like to see. At least not if I want to hold on. So for all those reasons, I’m a little bit more on the bearish side.”
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Image generated: Midway through the journey