A trader who rode the crypto breakout earlier this year has issued a warning that the latest Bitcoin (BTC) and altcoin rallies could suddenly reverse.
In a new strategy session, analyst Donalt tells his 53,400 YouTube subscribers that crypto markets are likely to be bullish as traders anticipate the approval of several Ethereum (ETH)-based futures exchange-traded funds (ETFs).
Donalt believes that the catalyst is not strong enough to sustain the latest rallies in the crypto markets.
“If you go to the Bitcoin daily chart, we are back at a group of resistance. To be honest I normally wouldn’t care too much about it, since we’ve tested it twice before this third test… but what I don’t like is if the market basically hit resistance on the uptrend So in my view this is news… because fast ** these stories unfold really fast…
I don’t like the story that’s been given to it, and I generally don’t like how the market is trading right now.
Source: DonAlt/Youtube
DonAlt also highlighted that crypto futures products have historically been largely bearish for digital asset markets.
“I also think people generally forget how Bitcoin future ETFs run. If you plot them on a chart, it doesn’t paint a pretty picture. We own most of the Bitcoin futures ETFs [coming out] At the pico-top of the market.
we had one [2017] – This basically ended the bull market. Then we basically had another one in 2021, if I remember correctly, that was also pretty close to the top. This generally doesn’t have the best track record so I’m very confused.
The Chicago Mercantile Exchange (CME) was the first to launch Bitcoin futures trading in December 2017, the same day BTC printed an all-time high of $20,000. While CME’s product is not a BTC futures ETF, its launch coincided with the beginning of the crypto bear market, in which Bitcoin dropped to $3,200 in 2018.
In October 2021, ETF provider ProShares launched the first SEC-approved Bitcoin futures ETF. A month later, Bitcoin hit an all-time high of nearly $69,000 before a bear market began.
At the time of writing, BTC is trading at $27,065.
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