Successful cryptocurrency analyst DonAlt pointed out significant changes in the strong upward trend of Bitcoin (BTC). He explained that since the approval of exchange-traded funds (ETFs) in the spot market in January, an unexpected sign of weakness has begun to be observed in Bitcoin. According to DonAlt, BTC’s strong uptrend this year is now starting to show signs of exhaustion.
DonAlt focused specifically on the price dynamics observed in Bitcoin since the ETF approval. While in previous periods, major news such as large ETF inflows often caused a rise in Bitcoin prices, recently this trend has reversed, he noted.
“Since the ETF candle, it has been consolidation (after) up, consolidation (after) up, consolidation (after) up, up, up. And this is not the first time this has happened and led to a sudden decline… This is some critical change.”
This indicates an unexpected change in Bitcoin’s price dynamics.
Additionally, another point DonAlt points out is his concerns about Bitcoin’s market structure on lower time frames. He states that some signals in the market should be taken into account, especially focusing on Bitcoin’s movements in lower time frames. According to DonAlt, BTC holders appear to be using the rallies to dump their Bitcoin holdings. This situation stands out as a factor that may negatively affect the price of Bitcoin in the short term.
In particular, DonAlt attributes the recent selling activity to Bitcoin transactions near the high time frame resistance of $69,000, suggesting that this supports Bitcoin bears.
Attributing the recent selling activity to Bitcoin trading near the $69,000 high timeframe resistance, DonAlt says the setup favors BTC bears.
“Basically they have these dips, they run away… and what happens is, you sell, there is a bounce, and people say: ‘Oh, that’s SFP (incorrect swing pattern). Now it’s going to go up’ and then it fucking goes down… And it does that all the time and it’s not necessarily a sign of decline. This is a sign that sellers have finally arrived. This does not mean that prices will fall, but this is the first time this has happened in this rally… This should not necessarily be considered a bad sign. “This is the first time we’ve actually had this since the ETF days… There’s a couple of concerns on the lower time frames, there’s a few concerns on the higher time frames, and overall if you put everything together it opens up the possibility of shorting this thing.”
In conclusion, DonAlt’s analysis highlights the uncertainties and concerns present in the BTC market. However, it is important to note that these concerns alone do not indicate a price decline and general market dynamics should be taken into account.
You can follow the current price movement here.
