A veteran trader is cautious about becoming bullish on Bitcoin despite recent price movements, citing the possibility of a crash similar to November 2018. During that time, Bitcoin dropped below $6,000 after months of consolidation, eventually reaching a low of almost $3,000. Pseudonymous trader DonAlt warns that traders may be too eager to turn bullish on Bitcoin after it broke its psychological support level of $60,000. He advises waiting for clear direction before making any significant moves in the market.
DonAlt emphasizes the importance of patience and caution in the current market environment. He recalls the lessons learned from past price movements, such as the false optimism that followed the $6,000 breakdown in 2018. According to him, a weekly close above $60,000 would be extremely bullish, while a close at $52,000 would signal the possibility of bounce plays in the following week. Until then, he suggests avoiding any hasty decisions and remaining on the sidelines.
Bitcoin’s failure to hold above $60,000 is seen by DonAlt as a significant range breakdown, which could require additional time and confirmation for the asset to recover. He believes that being overly aggressive in the current market conditions may not be wise, considering the risk/reward ratio. While he is prepared to go all-in once the range is reclaimed, he sees no immediate urgency to do so at the moment. Bitcoin is currently trading at $57,743, showing a 2.35% increase for the day.
To stay updated on the latest developments in the market, followers can subscribe to email alerts and follow the trader on social media platforms like X, Facebook, and Telegram. DonAlt’s insights and analysis can provide valuable guidance for traders looking to navigate the volatile world of cryptocurrencies. By remaining informed and cautious, traders can make more informed decisions and avoid falling into traps of false optimism or excessive risk-taking. The key takeaway from DonAlt’s perspective is the importance of patience, discipline, and risk management in trading Bitcoin and other cryptocurrencies.
