Noted Bitcoin analyst DonAlt, recognized for accurately forecasting the cryptocurrency‘s bottom in 2022, has raised the alarm with investors, cautioning that the recent market slump might persist. DonAlt, speaking from his X account, emphasized that Bitcoin’s failure to maintain a level above a crucial threshold could keep bears in control.
Crucial Resistance at $71,000-$73,000
DonAlt points out that Bitcoin must overcome a significant barrier, situated between $71,000 and $73,000, to regain its bullish momentum. Additionally, he marks $68,500 as a pivotal price point that could dictate Bitcoin’s immediate trajectory. His analysis, considering various time-scale technical indicators, suggests a gloomy forecast for the cryptocurrency.
Currently, Bitcoin is experiencing a 2.84% downturn, trading at $62,526. DonAlt identifies $62,000 as the next critical support level, indicating that a drop below this threshold could lead to further losses.
He further cautions that the ongoing bearish climate poses risks to overzealous Bitcoin bulls, particularly those using leveraged positions. While some traders aggressively seek to pinpoint the market’s bottom, DonAlt advises that this strategy could result in substantial financial setbacks.
Concerns for Spot ETF Investors
The analyst also highlights potential difficulties for investors in spot exchange-traded funds (ETFs) who may not be familiar with the intense volatility of the crypto market. He questions these investors’ resilience to withstand extreme fluctuations, typical of digital currencies, and suggests their inability to weather downturns could add to the market’s downward pressure.