A well-known analyst is painting a bearish picture for Bitcoin (BTC) following the potential approval of a spot market BTC exchange-traded fund (ETF). Going by the pseudonym DonAlt, this analyst, with a sizable following of 55,600 subscribers on the TechnicalRoundup YouTube channel, suggests that Bitcoin might experience a sharp decline of more than 25% from its current value.
In his own words, DonAlt advises, “If your position is worse than a $32,000 entry, you’re likely to experience some discomfort, in my opinion. There’s a good chance that we’ll see a retest of the $32,000 level.”
DonAlt also acknowledges that there’s an alternative scenario where Bitcoin doesn’t retrace to lower levels, and instead, it could surge to $60,000. He emphasizes that market movements are not set in stone, saying, “But it doesn’t have to unfold that way. I always make it clear that just because I say something could happen doesn’t mean it’s guaranteed. The market might go straight to $60,000, then pull back to $48,000, and ultimately reach $150,000. There’s always the chance that it may not retrace at all.”
The trader’s forecast is based on the potential approval of spot market BTC exchange-traded funds by the U.S. Securities and Exchange Commission (SEC), which could occur as early as January. In his view, it’s more likely than not that Bitcoin will revisit the lower $30,000 range following the ETF approval, at which point the market will determine its bullish or bearish direction.
As of now, Bitcoin is trading at $43,869, showing a slight increase over the past 24 hours.
