Bitcoin (BTC) Faces Potential Collapse, Warns Top Crypto Analyst.
Renowned crypto analyst DonAlt has raised concerns about the stability of Bitcoin, suggesting that the cryptocurrency may experience a significant downturn in the near future. In an insightful video shared with the TechnicalRoundup YouTube channel, which boasts a subscriber base of over 52,300 individuals, DonAlt outlined the potential risks associated with Bitcoin’s current situation.
According to the analyst, if Bitcoin fails to maintain its critical support level of $30,000, it could witness a substantial decline of up to 30%. Despite the recent positive market sentiment generated by the announcement of Bitcoin spot exchange-traded fund (ETF) applications and the favorable XRP ruling, DonAlt believes that the impact of these events may diminish, leading to a potential plunge in BTC value.
Expressing his current sentiment, DonAlt stated, “Although the price has seen an increase compared to yesterday, I am more bearish on Bitcoin today than I was before. While altcoins might receive some upward momentum, it could render the Bitcoin scenario invalid. However, I am not entirely bearish yet. What’s interesting about Bitcoin at the moment is that its recent surge was driven by positive news and the psychological significance of the $30,000 level, which is a strong and easily identifiable price point.”
The analyst further warned, “If we lose both the positive news impact and the psychological support of $30,000, I anticipate a significant collapse—a drastic drop of 10%, 20%, or even 30% in a short span of time.”
Considering Bitcoin’s current price of $30,307, a 30% decline would bring its value to approximately $21,000.
DonAlt predicts a gradual decline in Bitcoin’s value over the next few days, potentially signaling a bearish turn for the entire cryptocurrency market. He explained, “Although the recent news triggered a mere 2% increase, one would expect a much more significant effect. However, the bullish outlook can be easily invalidated with a minor 2% drop. Thus, it doesn’t require a substantial investment to remain bullish.”
Citing his cautious approach, the analyst continued, “Personally, I have a gut feeling that the market will continue to decline. I have several reasons for adopting a defensive stance. However, even if we witness a gradual decline over the next three, four, or five days, altcoins might still exhibit some upward movement.”
DonAlt warned against a combination of altcoin growth alongside Bitcoin’s decline, emphasizing that it would be the most bearish scenario possible. He stated, “If altcoins gain momentum while Bitcoin bleeds out due to this news event, it would be highly unfavorable… Any complete retracement of this news-induced surge would indicate an extremely bearish market sentiment. Therefore, it is crucial to remain cautious until such a scenario unfolds.”
As the crypto market faces uncertainty, investors and enthusiasts eagerly await developments to see how Bitcoin will navigate these critical challenges.
