A trader who caught the crypto rally earlier this year is warning that Bitcoin bulls could be victims of a trap if a spot-based BTC exchange-traded fund (ETF) gets the green light from regulators.
In a recent strategy session, pseudonymous analyst DonAlt tells his 53,000 YouTube subscribers that sellers will likely see the approval of a Bitcoin ETF as a chance to unload their BTC positions.
“We didn’t have the ETF denied, but we still went all the way back to where it was announced. So either you’re getting the biggest discount here of all time or we’re going to get shi*t news.
I’m 50/50 on it, but I don’t like the weakness. So even if we get an ETF, there’s a chance that we’re just going to go to $32,000 to $35,000 given the recent weakness. This is crypto-specific weakness, and people are very willing to sell it could be that people just start selling at $32,000, $34,000 [or] $35,000 if we get [an] ETF approved.
If we get it denied, we’re going to go, I think, to $20,000 – $19,000.”
In the event that Bitcoin goes on a full-blown bull run after an ETF gets approved, DonAlt says that BTC bulls will have a shot to reload their positions.
“Even if let’s say we rally and we go to $35,000 and I sell and it just goes vertical, I think we’re going to retest that on a pullback, and then I can just get back in.”