A top trader who hit the bottom of last year’s bear market believes Bitcoin (BTC) is one resistance level away from a big breakout to the upside.
Pseudonymous analyst DonAlt tells his 508,100 followers on social media platform
Should BTC break the resistance level, the top trader predicts that Bitcoin could float as high as $42,000.
“Anyway, my base case is $28,000 and we’re going to use nuclear weapons, otherwise we’ll go above $35,000 (and maybe even higher). It’s the last line of defense here, so they better make it count.
In a new strategy session on YouTube, DonAlt explains why he is bullish on BTC as it prepares to rise above $28,000. According to the analyst, crypto traders are apparently bearish on BTC despite Bitcoin’s “constructive” price action lately.
“I’ve been looking at the charts and I’ve been seeing Chop for ages. I have been looking at the charts lately and I have seen constructive price action. And then I check the sentiment and people say, ‘Yeah, it’s just bears reloading…’
Sentiment is still quite bearish, even though I think we just had a daily breakout. On October 1st we had a daily outbreak. We had this huge candle on the positive side that almost no one could explain why that happened.
I think we’ve since consolidated around this $28,000 level and for me $28,000 just based on weekly resistance. [is] the only real resistance I care about. The fact that we have been stuck with it for so long actually makes me a bit enthusiastic.”
Although the trader is currently bullish on BTC, he says notes that failure to break above $28,000 will likely lead to a massive sell-off.
“If this fails, we’re going to have a huge move. If it breaks, we’re probably going towards $23,000-$20,000.”
At the time of writing, Bitcoin is trading at $27,968.
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Generated image: Midjourney