A trader who bought Bitcoin’s November bottom at $16,000, sold its recent $25,000 top and rebought at $23,000 is updating his outlook on the volatile crypto markets.
In a new edition of Weekly Roundup, the pseudonymous trader DonAlt says a crucial moment for the markets is on deck as BTC’s monthly close approaches.
He says BTC on the verge of closing above monthly resistance at $23,100, which would signal BTC’s 2023 rally is not over yet.
“If we close above [monthly resistance], I could see a little bit of chop next month.
But in general, I would expect [BTC to move] up again. So I’m going to be quite happy with my positioning.”
The trader says he reentered the market because of intense fear of missing out, and because his bullish view on BTC remained intact as it approached short-term bullish invalidation at $23,000.
If Bitcoin once again dips below $23,000 and approaches a crucial area of short-term support at around $22,500 – the analyst says traders should be extremely cautious.
“We got a little bit of a pullback to, in my opinion, the best support in that area [at around $23,000].
If it starts breaking [down], I think it makes sense to be cautious because then we’re running into an area where we’re not making higher lows anymore and we’re coming back into these old ranges [below $22,500].”
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