A widely followed trader who recently took profits from positions entered in November of 2022 is issuing a warning as the crypto markets begin to trend downward.
The pseudonymous trader known as DonAlt tells his 479,100 Twitter followers that the crypto market rally appears to be “tainted” with Bitcoin (BTC) having failed to conquer a major resistance level.
According to DonAlt, his exit strategy outlined earlier this year was based on Bitcoin failing to break through the $32,000 price level.
“The altcoin season cheering once we hit the only real BTC resistance that exists did that for me.
Nothing is more accurate at timing tops, once that happens the entire context changes.
I’ll flip back as fast if I see strength but for now this rally seems tainted.
And it’s not like I didn’t have exiting around these levels in my plans from the get-go.
DonAlt also warns that Bitcoin is at risk of witnessing a big sell-off event as it is trading far below a key level for BTC bulls on the weekly timeframe.
A close below $29,500 this week and I’ll assume the high of this rally is in, expecting $24,000 or even $20,000 if something extreme happens.
A close above $30,000 this week would still look like indecision to me.
A close above $32,000 would look quite good.”
Bitcoin is trading at $28,017 at time of writing.
After selling BTC at the height of the previous bull cycle, DonAlt accumulated Bitcoin, Litecoin (LTC) and XRP in November of 2022. Last week, he said that he had unloaded his crypto positions after securing big gains on Bitcoin, Litecoin and XRP.