A seasoned cryptocurrency analyst is sounding the alarm about Bitcoin, warning that the digital asset could potentially drop to the $50,000 mark.
In his latest video update, the anonymous analyst known as DonAlt informs his 62,500 YouTube followers that if Bitcoin closes below $70,000 on a weekly basis, it could trigger a wave of liquidations for the cryptocurrency.
DonAlt posits that Bitcoin’s recent surge past the $70,000 threshold is largely fueled by traders looking to cash in on a quick profit, particularly in the context of a potential Trump victory. However, he cautions that these traders may find themselves in precarious positions if Bitcoin fails to maintain its upward momentum.
“I believe many have taken on positions betting on Trump, and should the market decline, they could be at significant risk. It seems that many are not necessarily interested in owning crypto for its own sake, but rather because they anticipate a price increase tied to Trump’s possible win. I consider this a risky stance, especially when the odds appear to be around 50/50 or perhaps 55/45 in Trump’s favor.
There are numerous traders poised to be easily shaken out of their positions, which is a signal I regard with great seriousness. If we see any weakness here, such as a complete reversal leading to a red weekly close, that would be a strong indicator of a downward trend. I suspect we wouldn’t stop in the mid-$60,000 range; we could see a dip into the lower $60,000s and potentially even revisit the $50,000 level.”
As of this writing, Bitcoin is trading at $69,379, slightly below the critical $70,000 mark identified by the trader.
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Disclaimer: The views expressed in The Daily Hodl do not constitute investment advice. Investors are encouraged to conduct their due diligence before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please be aware that your transactions and trades are at your own risk, and any potential losses are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor. It’s important to note that The Daily Hodl is involved in affiliate marketing.
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