A closely followed crypto strategist and trader says Bitcoin’s (BTC) price action resembles the market top of November 2021 and is ready for another deep retracement.
In a new strategy session, pseudonymous analyst DonAlt says that bears have taken control of Bitcoin after bulls failed to push the market higher despite large purchases from MicroStrategy’s Michael Saylor and Terra (LUNA) founder Do Kwon.
“I think the assumption has to be this is bearish and this is going to go down because we had a bunch of good news. We had a bunch of altcoins [go up], which is really interesting because this seems to be the case all the time when we have these breakouts where people get excited and start buying altcoins instead of Bitcoin and ETH…Â
And then we had Saylor buy and Do Kwon buy with a bunch of positive news and prices went down.”
DonAlt says Bitcoin’s rejection at $45,000 is a major red flag for bulls. According to the crypto strategist, the failed breakout is reminiscent of Bitcoin’s market structure in November where BTC rallied close to $70,000 and took out its previous all-time high only to start a multi-month downtrend.
“We swung up towards $70,000, swung back down, didn’t hold $60,000 and that was bearish. It was very clearly bearish, and it’s the same setup now where it’s obviously on the lower timeframe given it’s on the daily rather than the weekly, but it’s still the same setup.
Technically speaking, you should be bearish. Your invalidation is in the $47,000, and your target should be [the] range low which is $33,000.”
At time of writing, Bitcoin is exchanging hands for $42,400.
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