A crypto analyst known for his accurate predictions is warning that major cryptos such as Bitcoin, Litecoin and XRP are entering a downtrend.
DonAlt says Bitcoin and XRP can be bought at the lower level
The closely-followed trader tells his 479,100 followers on Twitter that the crypto rally looks “weak” as Bitcoin fails to break through a major resistance level. According to DonAlt, Bitcoin’s failure to surpass the $32,000 price level was the basis for his exit strategy he announced earlier this year.
The crypto analyst stated that once BTC resistance is reached, the altcoin season will end and the market will begin to decline. DonAlt says his strategy is based on Bitcoin’s $32,000 price level. Therefore, he considers the current rally to be weak and does not plan to hold his position unless he sees the strength to quickly return.
BTC approaches risky price zone
DonAlt warned that Bitcoin risks witnessing a major selling event. Stating that it is trading well below an important level for BTC bulls in the weekly time frame, DonAlt says that he expects $24,000 or even $20,000 if there is a close below $29,500 this week, assuming the high point of this rally has arrived.
Stating that a close above $30,000 still seems undecided, DonAlt states that a close above $32,000 might look pretty good. The $29,500 pointed out by the analyst was recently broken. BTC is currently busy maintaining the $27,000 support.
DonAlt closed all positions: Waiting for new bottoms
DonAlt bought Bitcoin, Litecoin (LTC) and XRP in November 2022, after selling BTC at the height of the previous bull cycle. Last week, he said he was emptying his crypto positions after making huge gains in Bitcoin, Litecoin, and XRP.
Will the BTC bulls be right or will the bears have the last laugh?
The $32,000 drop scenario that is part of DonAlt’s investment strategy becomes clear after the price loses $30,000. According to the latest data provided by GeeksLive, 25,000 BTC options are about to expire with a Put Call Ratio of 0.7.
This indicates that the expiration date of a significant number of Bitcoin options contracts, which allow traders to buy or sell BTC at a certain price but have no obligation, is approaching.
The combined option contracts had a notation value of $0.72 billion. This is the total value of the options contracts at their par value, assuming they are all used at the current market price. Additionally, $0.72 billion is a significant amount of money and could affect the Bitcoin market depending on how options are used.
In addition, this bullish behavior was also observed from the owners. According to Glassnode’s data, addresses with more than 0.1 Bitcoin were piling up.
cryptocoin.comAs you follow, whale wallets also prefer medium and small volume altcoins in this case.
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