Bitcoin’s heavy and dizzy steps might result in sharp movements and corrective responses in the market in the coming days. All the while the memeocin rally in the past few weeks is holding strong, yet it is expected for the market to reveal the frenzy around these several tokens, which had strolled around four-digit values these few days, and show them that most of them are nothing but scams.
DonAlt and Benjamin Cowen Suggest Caution
A cryptocurrency strategist nicknamed DonAlt who has around 50 thousand subscribers on YouTube and half a million followers on Twitter suggested through a chart that BTC would lose the $28,000 support that kept it inside an ascending wedge and the next support point for Bitcoin would be in the region of $25,000 and the second point would be close to $19,000. This pessimist statement from the expert is further elevated when he answered an interlocutor regarding whether Bitcoin would hold its corrective bet on the $25,200 mark when he said that he “does not think he will buy this year”.
“I think we have plenty of time overall. I think that the markets, in general, will cool down, either because of the drop in prices, that is, because of the price going sideways and cutting, which we had”, DonAlt stated.
One other reason for DonAlt’s pessimistic approach is Bitcoin (BTC)’s difficulty in taking advantage of some favorable moments that arose from certain factors like the fall of the US dollar, fear, uncertainty and doubt (FUD) involving some banks in the US, and the rise of gold and the S&P 500.
“We had strength in the S&P 500, we had strength in gold, we had banking FUD, we had dollar weakness. And BTC failed to rise. Why?” said DonAlt.
A warning about the memecoins was also issued this week by analyst Benjamin Cowen on his YouTube channel with nearly 800k subscribers. Benjamin Cowen reminded the investors that the memecoin frenzy could be “a complete scam” just like it was in the 2019.
