One of the few crypto traders who flipped bullish and bought Bitcoin at its bottom in November says he’s considering when and where he may sell and take some profit.
In a new edition of Weekly Open, the pseudonymous trader DonAlt says the market has been acting like it did in 2020, with BTC showing significant strength and quickly recovering after every dip.
However, the trader says he’s mapped out a zone that could be troublesome for BTC.
He points to a consolidation zone at about $30,000 as a point where he’ll consider lowering his exposure. Back in May and June of last year, that level was a key area of consolidation for the top crypto asset.
“I think we’re getting closer to levels where you actually want to be looking to sell at.
I was stupidly bullish at $16,000, I was stupidly bullish at $19,000, $20,000 – but mid-$20,000’s to low $30,000’s is I think where you start running into trouble…
Given we have this kind of [historic] consolidation here [at $30,000], I think at that point, the next push up is probably one to sell.”
Despite his newfound sense of caution, DonAlt says anything goes if Bitcoin can crack $32,000.
“Above $32,000 it starts getting into a level where you just have to shut off your brain and basically go with the flow I guess.
But that’s going to be tough for me too. I think anywhere in the $30,000 area is probably where I’m gonna be starting to unwind some positions, kind of take profit.”
DonAlt also bought Litecoin (LTC) near its November bottom of about $60. Although the coin is now at $96 and he’s concerned about BTC hitting resistance, the trader says he has no plans to sell that position even if BTC does hit a wall in the days and weeks ahead.
“I’ll probably hold my Litecoin still because I like the setup. But in general if Bitcoin does flip $32,000, it’s gonna be really tough to trade other than just hold.
Which is why I don’t want to sell everything if we go further up, because I know that I’m gonna be too stupid to just turn my brain off and buy $32,000 if we flip.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Vadim Sadovski/Chuenmanuse