A widely-followed crypto analyst, known as DonAlt, has issued a stark warning about Bitcoin’s near-term trajectory. According to his latest video update, Bitcoin could be heading for a substantial drop if it fails to secure a weekly close above $70,000. The analyst suggests that if Bitcoin remains below this crucial level, it might face further declines, potentially reaching as low as $50,000.
Speculation and Risk Drive Bitcoin’s Latest Rally
DonAlt attributes Bitcoin’s recent price surge to speculative market activity rather than sustainable growth. He points to the influence of high-profile events, especially the anticipation surrounding Donald Trump’s potential return to the presidency. Some investors are betting on a market upswing based on this political factor, opening short-term positions to capitalize on a possible Trump win. However, DonAlt warns that these positions could be at risk if Bitcoin fails to maintain upward momentum, describing such traders as “weak hands” who might sell off in response to any price pullback.
“Many investors are betting on Trump, expecting prices to rise, but this is a highly risky stance,” DonAlt explains. “If the market retraces, these positions could become vulnerable, leading to a cascade of liquidations.”
FOMC Winds Approaching: BTC and Altcoin Market Prepares for Impact
According to DonAlt, the probability of Trump winning is around 50-55%, making it a volatile basis for investing. He cautions that positions taken on this basis might be quickly liquidated due to their speculative nature. The analyst believes that any weakness shown in the weekly close for Bitcoin would indicate a strong bearish signal, especially if the close is in the red.
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Potential Dip to $50,000
If Bitcoin fails to hold the $70,000 level, DonAlt foresees a path toward $60,000 and possibly down to $50,000. The analyst cautions that if the upcoming weekly close shows signs of weakness or closes in red, it could trigger a wave of sell-offs, pushing BTC below $60,000 and toward the $50,000 range. “A reversal here or a red close could indicate strong downward momentum, and the decline might not stop in the mid-$60,000s. It might go below $60,000, even as low as $50,000,” he states.
Currently, Bitcoin trades at $69,379, hovering just below the critical $70,000 mark. DonAlt warns that remaining below this level could place Bitcoin investors in a precarious position. A sustained drop below this threshold could lead to a surge in selling pressure, paving the way for further declines.
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