Pseudonymous veteran trader DonAlt is cautious about the prospects of bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD but remains optimistic about its short-term future.
What happened: In the last episode On the Technical Roundup podcast, DonAlt said that Ethereum has significantly underperformed Bitcoin, but has not yet completely “gone away.”
He expressed skepticism about Bitcoin reaching $1 million in the next 10 years, but believes it will eventually replace gold as a store of value over the next century.
Regarding Ethereum, the analyst described its current state as “mediocre” and “not bad at all”, suggesting that it is underrated. He mentioned that he has a small position in ETH, but admitted that it is not based on solid reasoning.
DonAlt believes that the ETH/USD chart is showing some positive signs, with possible support levels and a possible inverse head and shoulders pattern. However, he is frustrated with the overall performance, especially the ETH/BTC ratio.
DonAlt also noted that he is bullish on Bitcoin from $58,000, saying he would become cautious if the price fell below $61,500 and bearish below $58,000.
Meme coins, Dogecoin in focus
Having been bearish on meme coins and correctly predicting that most would lose value, DonAlt emphasized that meme coins are essentially worthless and should be treated like lottery tickets.
While some major meme coins like Pepe PEPE/USD and Wow WOOF/USD have declined significantly, others like Dogecoin have held up better.
Specifically for Dogecoin, he noted that it is currently “boring” and trading around a $0.10 support level. Buying at this level could be a reasonable bet on the market recovery, with a stop loss if it falls below $0.10.
However, DonAlt warned that investing in Dogecoin could result in holding a sideways trading asset for several years.
Finally, DonAlt explained his approach to stopping losses, preferring to re-evaluate his position if certain levels are breached rather than using automatic stops. His strategy is to convert leveraged positions into spot trades if the market moves against him, but he still believes in the long-term potential.
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