A prominent cryptocurrency trader has warned that the price of the flagship cryptocurrency Bitcoin ($BTC) has struggled to surpass a significant resistance level for an extended period, which to him could mean BTC could soon face significant downside.
In a video shared with his over 52,000 subscribers on the Google-owned video-sharing platform YouTube, pseudonymous analyst DonAlt shared his increasingly bearish outlook on Bitcoin, noting he is currently not holding a short position on BTC.
One of the contributing factors to DonAlt’s negative sentiment is Bitcoin’s inability to rise above a resistance level slightly below $32,000, even while global stock markets are showing robust performance.
Per the analyst BTC has tested the level around $31,500 a number of times and has failed to rise above it as “it’s been weak” at a time in which the stock market’s benchmark index, the S&P 500, has been showing strength.
DonAlt added that other stock market indexes, including the Nasdaq, the German DAX index, and France’s CAC 40, along with other European ones, have been strong with some returning to their record highs. Bitcoin, on the other hand, hasn’t been close to it.
DonAlt also finds it worrying that Bitcoin is showing a downward trend, even amidst a generally positive news environment. The analyst noted that when he bought BTC around $15,000 to $16,000 he believed the cryptocurrency should have dropped to zero over the collapse of FTX and other major players in the space.
Per his words, despite a plethora of negative news the price of the cryptocurrency kept rising. Now, he says, despite a slew of positive news it’s declining, which has him leaning toward a potential bearish downturn in the near future.
The bearish prediction comes at a time in which a number of analysts are bullish on BTC. As CryptoGlobe reported, earlier London-based multinational banking and financial services firm Standard Chartered has suggested that the price of the flagship cryptocurrency could surge to $50,000 this year, and could breach the $120,000 by 2024’s close in another major bullish price prediction for BTC.
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