A top trader who witnessed the crypto breakout last year believes that Bitcoin (BTC) will witness a corrective move if it reaches a critical price level.
In a new strategy session, pseudonymous analyst DonAlt tells his 57,000 YouTube subscribers that Bitcoin is approaching a strong resistance area.
DonAlt says he expects BTC to witness a rapid pullback once it reaches its range resistance at around $58,000.
“$58,000, which I talk about as a range high, is the only realistic resistance. [It’s] actually pretty close now…
I think that’s important. If we were to get there, I think it would be mainly for a fuse. I think this will be the pinnacle for now…
I think this is the most obvious place to sell. [But] I don’t think it would be a trend-setting top or anything like that. I think it would just be a pullback top…
I think you’d get some pretty heavy selling there almost immediately, and then you’d get quite a pullback, maybe toward $46,000, maybe even toward lower levels.
The crypto strategist also says he wants to accumulate BTC when it drops, but only if it takes a nosedive to a key support in the high time frame of the low to mid $30,000s.
“The only thing I’m very sure will make it a good buy is the weekly and monthly support, which is between $32,000 and $35,000.
I don’t think those will be a hit, but if they are, that’s the kind of purchase that you just hold on to and you suspect that this will be the bottom just because it’s such an important area, and it is a nice 30% to 40% pullback, which is pretty clean. I like that.
So that would be a brain-dead lung or brain-dead purchase.”
At the time of writing, Bitcoin is trading at $51,665, down slightly over the past day.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney