A top analyst who noted last year’s crypto breakout believes Bitcoin (BTC) has entered uncharted waters and that big pullbacks are opportunities for long-term holders.
In a new strategy session, pseudonymous analyst DonAlt tells his 57,500 YouTube subscribers that the rapid rise of memecoins lately indicates a significant correction is in sight for Bitcoin.
While DonAlt expects a Bitcoin pullback, he thinks spot market ETFs (ETFs) investors will quickly bring about the BTC retracement.
“With the [memecoins] If we go up that crazy, I think we’re going to get frothy and fast, and I think that could very easily lead to a pretty significant pullback… If you get a significant pullback, I’d argue $45,000 to $50,000…
I think this could happen just based on the foam levels we’re getting, but we’re also in a new paradigm, as stupid as that sounds with the ETF. Bitcoin has gained a whole new investor base and they are actually investors.”
According to the trader, any Bitcoin pullback at this point would be a gift to long-term investors.
“I’m not worried because I would be happy if this thing pulls back a bit so I can buy some altcoins. That’s what I want to do: buy some [these coins] who pumped. Dogecoin smiles at me…
The problem is that it may not recede and then I’m out of luck, but it is what it is at that point.
Foam levels [are] high. Bitcoin has resistance, it’s really bad resistance, like we’re talking about the month, it’s the third time we’ve been there. So it doesn’t really make sense to have one [crypto bear] A capo-like man saying, ‘This is the pico top and now it’s going to collapse.’
I think if it’s going to drop and if we get the gift of a bigger pullback, those are the ones you want to buy and then the entries you want to hold for a while.
At the time of writing, Bitcoin is trading at $68,032, a few percentage points away from breaking its all-time high.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: DALLE3