A top analyst who caught last year’s crypto breakout believes Bitcoin (BTC) has entered uncharted waters and that big pullbacks are opportunities for long-term holders.
In a new strategy session, pseudonymous analyst DonAlt tells his 57,500 YouTube subscribers that the meteoric rise of memecoins as of late suggests that a significant correction is in sight for Bitcoin.
Although DonAlt expects a Bitcoin pullback, he thinks that spot market exchange-traded funds (ETFs) investors will make the BTC retracement quick.
“With the [memecoins] going up this insanely, I think we’re going to get frothy and quick, and I think that can very easily lead to quite a sizable pullback… If you get a sizable pullback, I would argue $45,000 to $50,000…
I think that can happen just based on the froth levels that we’re getting but also we are in a new paradigm, as dumb as that sounds like with the ETF. Bitcoin has gotten an entirely new investor base and they are actually investors.”
According to the trader, any Bitcoin pullback at this point would be a gift for long-term investors.
“I’m not worried because I’d be happy if this thing pulls back a little so I can buy some altcoins. That’s what I want to do: buy some of [these coins] that have been pumping. Dogecoin is smiling at me…
The problem is it might just not pull back and then I’m sh*t out of luck, but it is what it is at that point.
Froth levels [are] high. Bitcoin is at resistance-ish, it’s a really sh*tty resistance, like if we’re talking about the monthly, it’s the third time we’re there. So it doesn’t really make sense to be a [crypto bear] Capo kind of guy being like, ‘This is the pico top and now it’s going to collapse.’
I think if it’s going to go down and if we get the gift of a larger pullback, that’s the one that you want to be buying and then those entries you want to hold for a while.”
At time of writing, Bitcoin is trading at $68,032, a few percentage points away from breaching its all-time high.
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