A crypto trader who correctly called Bitcoin’s (BTC) bottom in November and sold its recent top at about $24,700 has now fully reentered the market.
This time around, the pseudonymous analyst DonAlt says he bought BTC at $23,000 – which he warns is a make or break level in the short-term.
“In general, my target has been reached and I just felt naked not having the position, so I bought early.
But if this dump stays like this, I’m actually getting bearish signals. This needs to pump basically to invalidate the bearish case before the monthly closes. Otherwise, we’re going to have some trouble…
I think there is quite a bit of risk here. If the monthly closes like this, we have a monthly and weekly bearish setup. That’s something that you don’t necessarily want to fade.
And if we’re showing weakness here, we break down over the next few days and the monthly closes poorly, I might actually consider just closing if we don’t move too low and then rebuying $20,000. Not entirely sure yet.”
As for Ethereum (ETH), DonAlt says he doesn’t love the USD chart on the daily, weekly or monthly time frames. However, he says ETH is looking better when paired with BTC.
“I’m kind of looking to ETH’s all-time high from 2018. I think $1,500, that level on the weekly… I would not necessarily like to see that get broken because then it starts double-toppy.
As long as we’re trading above there it looks ok, and I think in general that $1,500 level is a good one. If we should nuke, I think that’s a good level to buy, low time frame obviously…
I like the ETH/BTC chart, and I like the Bitcoin chart, so I can work with both of them.”
The trader also bought Litecoin (LTC) at the bottom and remains bullish in the long run. His current target to the upside is around $220.
“My target is $220-ish right now. The best support is the weekly support at $77…
I think the chances of it playing out are 50-50, so that’s a trade I’d be willing to take any time. So whether I’m in it from $60 or in it from $90, if I didn’t have the position I would technically want to have a position with the view that I have.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/BB DESIGN STOCK/Natalia Siiatovskaia