A well-known analyst in the cryptocurrency market made a harsh warning for Bitcoin and pointed out the danger that the price could fall to the $ 50,000 level. The analyst, anonymously known as DonAlt, stated in his latest video update that Bitcoin could face a bigger collapse if it closes for a week below the $70,000 level.
Bitcoin rise and risk factor are in the focus of the analyst
DonAlt thinks that there are speculative movements behind Bitcoin exceeding the $ 70,000 level, especially that some investors opened positions to make short-term profits on the possibility of Donald Trump winning the presidency again. However, the analyst states that these positions are at risk of liquidation if Bitcoin cannot sustain its rally. DonAlt says such short-term investors are known as “weak hands” and can close out their positions in the event of even a small decline. He says:
I think there are a lot of people in the market who are betting on Trump and opening positions in the hope that prices will rise. However, if there is a pullback in the market, all of these positions could be in jeopardy. Many of these investors buy crypto with the thought that it will increase in value, acting with the confidence that Trump will win. But this is a very risky position.
The analyst states that the probability of Trump winning the elections is around 50%-55%, so he points out that opening a position based solely on this prediction could be dangerous. Stating that positions opened with this uncertainty can be easily cleared, DonAlt thinks that if there is a weakness in Bitcoin’s weekly closing, this will be a strong downward signal.
Possibility of a return to $50,000
DonAlt predicts that if the Bitcoin price continues to remain below the $70,000 level, the price may first drop to $60,000 and then to the $50,000 band. According to the analyst, there is a high probability that BTC will fall below $60,000, especially if the weekly close is in the red. This could trigger a larger downtrend as investors in the market close their positions. The analyst said:
If we get a signal of weakness here and this weekly close reverses completely or closes in the red, that would be a pretty strong signal to the downside. And the decline may not stop at mid-$60,000 levels. I think the decline may continue below $60,000 or even up to $50,000 again.
At the time of this analysis, Bitcoin is trading at $69,379, which is just below the critical $70,000 level set by the analyst. If Bitcoin continues to remain at this level, as DonAlt predicts, it could indicate a dangerous zone for investors. In particular, investors think that a larger sales wave may be at the door as the price, which is expected to remain above the $ 70,000 level, falls below this level.
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