A trader who accurately cited the crypto rally earlier this year warns that digital assets could collapse if a financial trend emerges.
Pseudonymous analyst DonAlt tells his 500,200 Twitter followers that he closely monitors the performance of the S&P 500.
According to DonAlt, Bitcoin (BTC) and the broader crypto markets are likely to experience a serious correction if the stock market shows signs of bullish exhaustion.
“The problem with crypto not recovering when stocks rise is that once the stocks stop rising, we get f*cked.
And that is exactly what is happening now. Bulls better pray to God that the S&P just goes up-only because if it doesn’t then crypto nukes is real.
Looking at Bitcoin, DonAlt say that BTC could show some semblance of bullishness if it manages to recover the key USD 30,000 psychological level.
“BTC Update: Still looking at $30,000 for early signs of bulls not being neutered, but bulls continue to disappoint.
$27,000 is support, but not good enough for me to bid blindly, I’d rather wait until we have some bull momentum again.
As in nothing changed, still bearish.
For now, DonAlt believes that Bitcoin’s recent price action indicates that BTC is likely to see more downside moves after retesting USD 29,000 as resistance.
“BTC Update: Squeezing Some Bulls Before Squeezing Bears, Ending In A Bearish Retest. As long as we close below $30,000, this is still much more bearish than bullish. Still on my wings until further notice.”
Bitcoin is trading at $29,019 at the time of writing, down 0.9% in the past 24 hours.
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Image generated: Midway through the journey