An analyst who skillfully rode this year’s crypto turnaround says he’s close to flipping bullish on Bitcoin (BTC) as the crypto king continues to consolidate around $27,000.
In a new strategy session, pseudonymous trader DonAlt tells his 50,800 YouTube subscribers that the lack of follow-through from BTC bears after defending resistance at $30,000 suggests that Bitcoin is not yet done with its uptrend.
According to DonAlt, Bitcoin often goes down hard and fast after hitting a key resistance level, and the fact that BTC continues to consolidate close to $30,000 could be seen as a bullish signal.
“Like I said on the monthly, we’ve had a breakdown here, and so far nothing’s happened, and I think that’s a good thing for bulls. Every week that goes by I will become more and more bullish, even if (the) price doesn’t change. Obviously, if (the) price goes up, I’m just going to flip back bullish entirely…
If you look at previous tops and how they play out, it’s very rare that they don’t have big candles in general and that they don’t play out fast. And this one just looks like a consolidation more so than a breakdown now… We’ve had a breakdown, but it did not lead to anything, and that usually means, in crypto at least, means upside.”
DonAlt also says that he’s looking for the first sign of strength to start accumulating BTC.
“I’ve actually started playing on the bullish side again a little bit but nothing major. But that’s where my head’s at based on the fact that we should have moved, (but) we didn’t…
[The] ‘Is it lag?’ argument only lasts for so long… The lag argument you can make for a couple of days, maybe for a week or two. But if it persists, it’s pretty hard to argue that way. And I think it’s the same here. Basically, the breakdown argument gets harder and harder to make the longer it takes.”
At time of writing, Bitcoin is trading for $27,089.
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