Bitcoin Bulls Should Be 'Cautious' At $61.5K And Bearish Below This Crucial Level, Says Veteran Trader

Pseudonymous veteran trader DonAlt is cautious about the prospects of Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD but remains bullish on their near-term future.

What Happened: In the latest episode of the Technical Roundup podcast, DonAlt said that Ethereum has been underperforming Bitcoin significantly but hasn’t completely “washed out” yet.

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,” suggesting it’s underappreciated. He mentioned having a small position in ETH but admitted it’s not based on strong reasoning.

DonAlt thinks the ETH/USD chart shows some positive signs, with potential support levels and a possible inverse head and shoulders pattern forming. However, he is frustrated with the overall performance, especially on the ETH/BTC ratio.

DonAlt also pointed out being bullish on Bitcoin since $58,000, saying he would become cautious if the price dropped below $61,500, and bearish below $58,000.

Meme Coins, Dogecoin In Focus

After previously being bearish on meme coins and correctly predicting that most would lose value, DonAlt emphasized that meme coins are essentially useless and should be treated as lottery tickets.

While some major meme coins like Pepe PEPE/USD and Woof WOOF/USD have declined significantly, others like Dogecoin have held up better.

For Dogecoin specifically, he noted that it’s currently "boring" and trading around a support level of $0.10. Buying at this level could be a reasonable bet on market recovery, with a stop-loss if it drops 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 stop losses, preferring to reassess their position if certain levels are breached rather than using automatic stop losses. 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.

Read Next: 

• Bitcoin’s Price Rally Could Be Driven By Multiple Factors In Coming Months: Standard Chartered

Image created using artificial intelligence with Midjourney