An analyst who predicted the crypto bottom in November of 2022 is re-entering the market after Bitcoin (BTC) briefly dropped below the $25,000 support level earlier this week.
Pseudonymous crypto strategist DonAlt tells the 53,100 subscribers of the TechnicalRoundup YouTube channel that he faced two choices before he opened a new position on Bitcoin.
“We’re at the point where you could make an argument for buying here [around $26,000]. And if you’re wrong you get stopped out and you get to buy at $19,000.
The problem with kind of not doing anything, and the reason why I took a trade – I bought like a little bit, not too much, but a little bit of Bitcoin – is, basically, because I’m just guessing that I will not get an entry otherwise.”
The analyst says if his trade idea is proven correct, he will exit his trade after hitting a profit level running into the double-digit percentage points.
“The target is above $30,000, I’ll see how how it goes.”
Bitcoin is trading at $26,342 at time of writing.
According to DonAlt, “capitulation proper” will ensue if the trade idea is invalidated at around 5% south of the current level.
“I’m not too bullish. I’m not too bearish. The reason why I kind of think this is an interesting trade in general is, basically, because I think if this fails… if you break down here [below $24,900]… I think we’re going to start capitulating.
And then we’re going to start capitulating proper. And we’re going to go to $20,000. So you basically have an invalidation around $25,000 right now.”
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