Trader who masterfully rode on Bitcoin and crypto reversal issues big warning when market falls
A widely followed trader who recently took profits from positions entered in November 2022 is issuing a warning as crypto markets begin to trend down.
The pseudonymous trader known as DonAlt says to his 479,100 Twitter followers that the crypto market rally appears to be “tainted” with Bitcoin (BTC) failing to capture a major resistance level.
According to DonAlt, his end strategy outlined earlier this year was based on Bitcoin failing to break through the $32,000 price level.
“Altcoin season cheers when we hit the only real BTC resistance in existence did it for me.
Nothing is more precise in terms of timing, once it happens the whole context changes.
I will turn back just as quickly if I see strength, but for now this rally seems tainted.
And it’s not like I didn’t have anything exciting about these levels in my plans from the start.
DonAlt also warns that Bitcoin is at risk of witnessing a major sell-off event as it trades well below a key level for BTC bulls on the weekly time frame.
“BTC Update:
Approaching below $29,500 this week and I would assume the high of this rally is in, expect $24,000 or even $20,000 if something extreme happens.
A close above $30,000 this week would still look like indecision to me.
Anywhere above $32,000 would look pretty good.”
Bitcoin is trading at $28,017 at the time of writing.
After selling BTC at the height of the previous bull cycle, DonAlt accumulated Bitcoin, Litecoin (LTC) and XRP in November 2022. Last week, he so that he had unloaded his crypto positions after securing large gains on Bitcoin, Litecoin and XRP.
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