A trader who skillfully rode the 2023 Bitcoin (BTC) breakout rally says the crypto king is hovering at a zone that offers maximum reward but minimum risk for bears.
Pseudonymous analyst DonAlt tells his 482,300 Twitter followers that Bitcoin is trading below his “indecision” level around the $30,000 price area.
According to the crypto strategist, Bitcoin retested the indecision level as resistance, suggesting that a deeper correction is in sight for BTC.
“Had quite a good week, will sadly most likely end as a bearish retest of the indecision zone. Maximum risk:reward for shorts here, but I’d rather just wait until it’s bullish again I don’t care whether that’ll be higher or lower.”
As for his downside target for Bitcoin, DonAlt says that BTC could fall to as low as $20,000 and still remain macro-bullish.
“The monthly would be bullish even at $20,000. So if you don’t really care about a drop, there’s no use in selling.”
DonAlt is also issuing a warning, saying that Bitcoin could punish leveraged traders as long as BTC is hovering above $20,000 but below $30,000.
“Anything below $30,000 and above $20,000 is a lie. We’re in the phase of the market in which we bleed out all the leverage traders, and it’ll go as far up or down in those boundaries as it needs to, to kill ’em.”
At time of writing, Bitcoin is trading for $28,003.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: Midjourney