In a YouTube video on Friday, pseudonymous analyst DonAlt said that Bitcoin is looking at a decline of up to 30% if it loses the key $30,000 level.
According to the analyst, Bitcoin experienced a rally following positive developments that included the submission of Bitcoin spot exchange-traded fund (ETF) applications and a significant ruling related to XRP.
However, he cautioned that the impact of these events could fade, potentially resulting in a sharp decline in BTC’s value.
“Price is higher than it was yesterday. And I’m much more bearish now than I was yesterday on Bitcoin,” DonAlt said.
“I’m not necessarily bearish yet. In general, the cool thing with Bitcoin right now is that basically, this move started with good news, one, and off of $30,000, a strong, strong level that is just very obvious to see,” he added.
According to DonAlt, Bitcoin may slowly decline in value over the next few days before the entire crypto market turns bearish.
“I think if we lose both, basically if we lose the news impact and we lose the $30,000 psychological level, I think this is going to collapse — like proper nuke level as in you get like 10%, 20%, 30% down pretty much almost immediately,” he said in the video.
The analyst mentioned that his gut feeling indicated a downward direction in the market. He further explained multiple reasons for adopting a highly defensive stance.
However, DonAlt expressed the belief that altcoins might retain some momentum, even in the event of a gradual decline over the next few days. He speculated that some activity related to altcoins could still exist during that period.
“But that would be the worst combination, honestly. If you get altcoin action while Bitcoin bleeds this news event out, that’s the most bearish it could be. Any full retraces of this news event will be very, very bearish. And that means you can be bullish until it happens,” he said.
At the time of writing, Bitcoin was trading at $30,306, up by one percent in the last seven days.
Produced in association with Benzinga
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