A trader who skillfully rode this year’s crypto rally says he has considerably trimmed his exposure in the digital asset markets following Bitcoin’s (BTC) price doldrums over the last few days.
In a new strategy session, analyst DonAlt tells his 50,900 YouTube subscribers that Bitcoin’s correction from about $28,500 to around $27,000 last week was his signal to get out of the crypto markets.
The crypto strategist says that Bitcoin’s current market structure is not giving him any reason to be bullish on BTC.
“I’ve been kind of de-risking quite a bit across the market, which basically just meant that for Bitcoin I took a slight loss, for Litecoin I took a big win and for XRP I took quite a big win as well.
I still have a little bit, but I de-risked considerably just based on the fact that, even if you make the argument that it’s just chop and you can ignore it, I don’t have a good technical reason to be in Bitcoin anymore.”
DonAlt also says that while his Litecoin (LTC) and XRP positions were profitable, he noted that Bitcoin’s weakness is a sign that the recent rally in the altcoin markets will likely be short-lived.
“I got my upside in the altcoins, which like I said at the start of the show makes me nervous every time. When I’m technically wrong on Bitcoin, but I still make money on altcoins that just gets me spooked the f*** out because usually the altcoins do well or like better on the tail end of a rally.”
He also highlights that Bitcoin has mostly traded sideways over the past few weeks even though the stock market has shown considerable strength.
“Let’s be real: the S&P has done wonders in the last week. We’ve had a lot of strength, and it’s not just flown into Bitcoin.
All of that just has me disinterested.”
DonAlt concludes that he’d rather stay on the sidelines than give back all of his recent altcoin gains.
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Featured Image: Shutterstock/Tithi Luadthong