Trader Leaves Crypto Rally After Bitcoin Fails to Provide Bullish Signals
• A trader who successfully traded during the crypto rally has come to the conclusion that Bitcoin’s current market structure is not giving him any reason to be bullish and has de-risked considerably.
• Litecoin (LTC) and XRP positions were profitable but Bitcoin’s recent weakness is a sign that the altcoin markets will likely be short-lived.
• The trader would rather stay on the sidelines than give back all of his recent altcoin gains.
Trader Cashes Out After Crypto 2023 Rally
A well-experienced trader who rode this year’s crypto rally recently unloaded most of his Bitcoin (BTC) and Altcoin positions, citing lack of bullish indicators in BTC’s market structure as justification for his move. DonAlt, an analyst with 50,900 YouTube subscribers, explained in a strategy session how last week’s correction from $28,500 to around $27,000 spurred him into action.
Bitcoin Not Providing Bullish Signals
DonAlt noted that he still holds some digital asset exposure but “de-risked considerably” due to lack of “good technical reason to be in Bitcoin anymore”. He also said that while his Litecoin (LTC) and XRP positions were profitable, he believes that the recent rally in the altcoin markets will soon fizzle out due to Bitcoin’s weakness.
Stock Market Performance Doesn’t Translate To Crypto
The strategist also pointed out that even though the stock market is showing considerable strength, BTC has been trading sideways for weeks now which further dampens its appeal for him. He concluded by saying he’d rather stay on the sidelines than give back all of his recent altcoin gains.
Why Traders Unload Positions
Traders unload their crypto positions when they don’t see any potential for making more profits or when there are other better investment opportunities available elsewhere – such as stocks and bonds – which offer better returns without as much risk involved with them as those associated with cryptocurrencies.
Risks Involved With Trading Cryptocurrencies
Crypto traders should always bear in mind that trading digital assets carries inherent risks including potential losses if they make wrong decisions or fail to monitor their portfolios properly. It is therefore important to conduct thorough research before investing in cryptocurrencies and only invest what you can afford to lose.
