A crypto strategist who nailed the 2022 Bitcoin bottom believes that one major investor cohort will catalyze a brutal bear winter for BTC.
Pseudonymous analyst DonAlt tells his 670,400 followers on the social media platform X that Bitcoin treasury companies will be the source of tremendous selling pressure in the next bear market.
Data from BitcoinTreasuries shows that private and public companies across the globe hold 1,112,904 BTC worth more than $117.445 billion at time of writing.
Says DonAlt,
“Bitcoin treasury companies… will be the reason for the next bear market being as violent as prior bear markets, and no one can convince me otherwise.
Good Ponzi while they’re going though so keep going.”
According to DonAlt, the next Bitcoin bear market could be as devastating as the one witnessed in 2018 when BTC collapsed from $20,000 to $3,000.
“Whatever the top ends up being, 70-80% down from that would be my guess.”
While DonAlt sees a crippling Bitcoin bear market once BTC tops out this cycle, he remains bullish on the crypto king for now. In a new strategy session, he says that a Bitcoin move below a key support level could trigger an over 11% correction from current levels.
“If we set a new low below $101,000, I could easily see us wipe towards $95,000 if not $90,000 pretty quickly.”
At time of writing, Bitcoin is trading for $105,438.
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