Prominent pseudonymous crypto analyst “DonAlt” recently offered his perspective on the intriguing interplay between the S&P 500 and the crypto market. DonAlt, who has over 500,000 followers on X (formerly known as Twitter), posits that the fortunes of Bitcoin, and the broader crypto market, are closely tethered to the stock market’s performance. His cautionary note is that a slowdown or signs of fatigue in the stock market’s bullish trend could trigger a substantial correction in the crypto market. In the past several days, DonAlt has shared a series of insights about the Bitcoin (BTC) price on X.
His observations have mainly been bearish, reflecting a cautious outlook on the cryptocurrency’s near-term prospects. On July 26, DonAlt noted that despite a slight increase in Bitcoin’s price, the cryptocurrency remained in bear territory. He suggested that a daily close above $30,000 could indicate a shift in market sentiment, potentially signaling that bullish investors are regaining some control. However, he emphasized that this was the minimum requirement for him to adopt a more optimistic stance. The following day, DonAlt updated his followers on the retracement of the previous day’s price increase. He expressed a pessimistic view, pointing out that the inability to maintain even the minimum gains could signify a deeper bear market. On August 1, DonAlt continued to monitor the $30,000 level as a key indicator of bullish momentum. He acknowledged the $27,000 level as a support but was not convinced enough to place a blind bid at that price.
Instead, he preferred to wait for a clear sign of bullish momentum. His overall sentiment remained bearish. By August 2, DonAlt observed a squeeze on both bulls and bears, resulting in a bearish retest. He reiterated his bearish stance, stating that as long as Bitcoin’s price was closing below $30,000, the market was more bearish than bullish. He concluded by saying he would remain on the sidelines until further notice. At the time of writing, Bitcoin is trading at around $29,019, down 0.5% in the last 24 hours.
Source : [S&P 500's Role in Crypto Market: Analyst's Warning]- CryptoGlobe / August 05, 2023