Benzinga - Prominent crypto trader DonAlt took to his social media account with candid insights, hinting at a potential market peak amid what he perceives as heightened irrationality and negativity.
What Happened: DonAlt voices a gut feeling that the market might have hit its peak, despite not expecting it anytime soon. He notes an unprecedented level of hate in his comments, which he views as an indicator of market sentiment. "The hate in my comments is at ATH," he observes, implying that heightened emotions often coincide with market tops.
Anyway cycle top kinda mood todayVery weird I didn't think we'd be even close, I'll ponder over it some more, maybe my gut is off on it this time
— DonAlt (@CryptoDonAlt) May 14, 2024
He attributes this potential peak to the current state of the market, describing it as being "objectively weak while it should be strong." DonAlt argues that this combination of a weak market and high irrationality spells trouble and highlights his concern about the sophistication of market participants.
Challenging the prevailing narrative, DonAlt questions the assumption of Ethereum (CRYPTO: ETH) perpetual dominance alongside Bitcoin (CRYPTO: BTC), suggesting it’s a risky strategy to solely rely on both assets. "I'm one of the few people that thinks ETH does not have to stay around forever," he says, calling out the "Buy BTC and ETH and chill" strategy as risky.
Also Read: This Trader Sees A ‘Barbell Portfolio Of BTC And Memes’ As Most Profitable Trading Strategy
Why It Matters: DonAlt expresses certainty that the cycle top is in, although he acknowledges that he could be wrong. He is particularly bearish on meme coins, stating, "I’m personally convinced it’s over for memes," predicting a significant crash for this segment of the market.
I'm personally convinced it's over for memes, rest of the market might get out of this ok but I'm expecting memes to giga rugGL if your portfolio is in the 10th iteration of a dog or a cat
— DonAlt (@CryptoDonAlt) May 15, 2024
He warns that the market’s current delusional state could lead to significant downsides and ponders the potential of a complacency bounce. "I’m mostly wondering how high a complacency bounce could go and whether I actually wanna fund a proper leverage account again to short it," he contemplates.
Regarding trades, DonAlt plans to short Dogwifhat (CRYPTO: WIF) range high, targeting below the range low. He also notes a bullish breakout for Pepe (CRYPTO: PEPE), planning to short if it falls back into the range. He concludes, “Prefer WIF but might spread my bets,” he concludes. For Bitcoin, Donalt plans to “short with size” if it reaches his original top target of $80,000 to $90,000 or buy in case it “nukes.”
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Why This Crypto Market Is ‘A Bear Trap’ And Which Coins This Trader Is Backing
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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