The crypto market bloodbath continued today with bitcoin (BTC) falling 5% to around $38,000 and ether (ETH) dropping 8% to $2,180 at press time. Major altcoins like Chainlink’s LINK and Avalanche’s AVAX were hit even harder, shedding 10% each.
As prices tumble, experienced crypto trader @DonAlt offered his views on X (Twitter) on where the market may be headed next. DonAlt, known for his chart analysis and trading calls, told his followers:
“$BTC This chart is all you need IMO. Wicks below $35k seem like a good buy. Consolidation at $35k seems like a decent buy. The longer it takes the better, just need to absorb all the sell the news/GBTC/CME front running/whatever else and then hope macro stays decent.”
DonAlt believes bitcoin finding support around $35,000 and consolidating there before its next leg up would be a healthy development for the market. He thinks there is still selling pressure from events like the recent bitcoin ETF approvals and futures expirations that needs to be worked through.
In a follow-up tweet, DonAlt added:
“I’ve been saying that the ETH ETF narrative is gonna face trouble if the BTC ETF ends up a sell-the-news event. Last weeks price action seems to validate that train of thought. Still think it’ll be a good trade later down the line but the weaker BTC is, the weaker ETH will be.”
Here DonAlt argues the launches of bitcoin ETFs last week have largely been priced in already, rather than boosting prices further. He believes that because ether trades in sympathy with bitcoin, weakness in BTC could hamper ETH in the short term too.
While brutal selloffs shake out overheated markets, for smart traders like DonAlt blood is in the streets signals opportunities to buy at discounted prices. Whether the crypto winter turns into a nuclear one remains to be seen, but his analysis suggests there may be frosty bargains ahead.
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