A veteran crypto strategist is issuing a dire warning on Bitcoin, saying that BTC is in danger of plummeting to the $50,000 price level.
In a new video update, pseudonymous analyst DonAlt tells his 62,500 YouTube subscribers that a Bitcoin weekly close below $70,000 opens the door for another round of cascading liquidations for BTC.
DonAlt believes that Bitcoin’s recent climb above $70,000 is driven by paper-handed traders looking to make a quick buck in the event of a Trump victory. But the analyst warns that their positions will likely be liquidated if BTC struggles to sustain its rally.
“I think there’s a lot of people that added a bunch of positions betting on Trump, and if the market moves down, I think they’re all in danger.
I think there’s a bunch of people basically in a position that is not necessarily, ‘Hey, I want to own crypto for the sake of it.’ They want to own crypto because they think it’s going to go up because Trump is going to win.
I think that’s a dangerous position to be in, especially when I think the odds are 50/50 or maybe 55/45 for Trump to win…
There are a lot of people with positions that could easily be flushed out, so I take that signal quite seriously. If we get weakness here, if this weekly fully reverses [and] closes red, anything like that would be quite a strong signal for a downside.
And I think it wouldn’t necessarily stop in the mid-$60,000s. I think then we might go to the lower $60,000s if not into the $50,000 again.”
At time of writing, Bitcoin is trading for $69,379, slightly below the trader’s key level of $70,000.
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