Veteran trader DonAlt, known for his pseudonym, is taking a cautious approach to the prospects of Bitcoin (BTC/USD), Ethereum (ETH/USD), and Dogecoin (DOGE/USD), despite remaining bullish on their near-term future.
In the latest episode of the Technical Roundup podcast, DonAlt pointed out that Ethereum has been lagging behind Bitcoin significantly, yet it hasn’t fully ‘washed out’ just yet. While expressing skepticism about Bitcoin reaching the $1 million mark in the next ten years, he believes it will eventually replace gold as the dominant store of value over the next century.
When it comes to Ethereum, DonAlt described its current state as ‘mediocre’ and ‘not bad,’ suggesting it’s undervalued. He admitted to holding a small ETH position but acknowledged it wasn’t based on strong reasoning. Looking at the ETH/USD chart, he sees positive signs, with potential support levels and a possible inverse head and shoulders pattern forming. However, he remains frustrated with the overall performance, particularly on the ETH/BTC ratio.
DonAlt also confessed to being bullish on Bitcoin since $58,000, stating he would become cautious if the price dropped below $61,500 and bearish below $58,000.
Meme Coins: Dogecoin in Focus
Having previously been bearish on meme coins and correctly predicting the decline of most, DonAlt emphasized their essentially useless nature, comparing them to lottery tickets. While some major meme coins like Pepe (PEPE/USD) and Woof (WOOF/USD) have experienced significant dips, others like Dogecoin have held their ground better.
Focusing on Dogecoin specifically, he described its current state as ‘boring,’ trading around a support level of $0.10. Buying at this level could be a reasonable bet on market recovery, with a stop-loss in place if it falls below $0.10. However, DonAlt warned that investing in Dogecoin could lead to holding a sideways-trading asset for several years.
Stop Loss Strategy
Finally, DonAlt explained his approach to stop losses, preferring to reassess their position if certain levels are breached rather than relying on automatic stop losses. His strategy involves converting leveraged positions into spot trades if the market moves against him, while still maintaining his belief in their long-term potential.
