A trader who rode the rally in the broader crypto markets earlier this year is warning that Bitcoin (BTC) is in a precarious position even after clearing resistance at $30,000.
Pseudonymous trader DonAlt tells his 509,700 followers on social media platform X that Bitcoin must end the week above the $32,290 price level to confirm the bullish breakout.
According to the analyst, BTC is in a dangerous position because a weekly close below the key price area would indicate that the rally is a major bull trap.
“If this week goes well, we’ll be back, guys. I’ve been vocally and aggressively optimistic the last few days because you could tell this was going to blow the lid off. Now that we’ve done that, we actually need to hold the landing. I’m optimistic, but this is where it gets more dangerous.”
Looking at DonAlt’s chart, it appears he thinks BTC is in bull territory as long as it hovers above $32,290.
At the time of writing, Bitcoin is trading at $33,838.
The analyst also thinks that people are still sleeping on the idea that a spot market exchange-traded fund (ETF) is in the offing for Bitcoin. DonAlt says Bitcoin is likely to gather more bullish steam as retail investors hop on the Bitcoin ETF bandwagon.
“The best part of all this is that we’re not even in the ETF hype phase yet. We’re just getting into the “A few people know we’re getting an ETF and are trying to get ahead of the curve” phase. It will be so nice if people fully pick up the ETF story.”
Last week, DonAlt predicted that Bitcoin could rise to at least $60,000 once US regulators greenlight a spot-based Bitcoin ETF.
“I think $60,000 is a reasonable target if we get the ETF. Obviously not in the short term, but that’s kind of where I think this could go. I think between $60,000 and $100,000 is the top end.”
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Generated image: DALLE-3