A popular crypto analyst says he’s looking at the two potential scenarios for Bitcoin as the king crypto struggles below $50,000.
The pseudonymous trader, known as DonAlt, mentions on the Weekly Open that Bitcoin remains bullish as long as it stays above a key level.
“The weekly [chart] is still bullish as long as you’re holding $45,000, and the daily is still bullish.”
DonAlt asserts if Bitcoin breaches the key support area, it will likely accelerate down to around $40,000. If that level breaks, he says BTC will “completely roll over.” If it holds, he predicts Bitcoin will launch the second leg in the bullish direction.
But for now, DonAlt is waiting for the market to give him more signals that would indicate whether there’s a larger shift in Bitcoin’s trend.
“So if you want to be super bearish, I think it’s still sane to wait for, let’s say if we lose $45,000 on the weekly and start losing $40,000 on the daily. Then, it starts looking like the complacency top is in… If you’re [a] bull, you want to be positioning for bullish price action… The bears have invalidation above $50,000. The bulls have an invalidation below $40,000.”
Although DonAlt is currently neutral on BTC, he also doesn’t discount the possibility of a Bitcoin supercycle.
“It’s kind of funny how we have the ICO [initial coin offering] stuff mirrored in the NFT [non-fungible token] space, and then we have the low-cap [whatevers] pumping as well. Kind of reminds me of 2018, not going to lie. But I mean maybe it’s the supercycle, and honestly, I don’t want to discount that idea. I don’t think it’s crazy to play for it, given that positioning yourself for it is going to be really hard the moment it’s going to be proven true. The moment that everyone agrees it’s a supercycle or whatever, it’s going to be impossible to get in.”
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