A top trader who nailed the bottom of last year’s bear market believes that Bitcoin (BTC) is one resistance level away from igniting a big burst to the upside.
Pseudonymous analyst DonAlt tells his 508,100 followers on the social media platform X that he thinks Bitcoin has a solid chance to rally as it threatens to take out resistance at $28,000.
Should BTC breach the resistance level, the top trader predicts that Bitcoin could soar as high as $42,000.
“Anyway, my base case is $28,000 holds and we nuke or we’ll just go above $35,000 (and maybe higher). Bears last line of defense here so they better make it count.”
In a new strategy session on YouTube, DonAlt explains why he’s bullish on BTC as it gears up to move above $28,000. According to the analyst, crypto traders are seemingly bearish on BTC despite Bitcoin’s “constructive” price action as of late.
“I’ve been looking at the charts and I’ve seen chop basically for ages. I’ve been looking at the charts lately, and I’ve seen constructive price action. And then I check the sentiment and people are just like, ‘Yeah, it’s just bears reloading…’
The sentiment is quite bearish still even though I think we just had a daily breakout. We had a daily breakout on the 1st of October. We had that massive candle to the upside that barely anyone could explain why that was happening.
I think ever since then we’ve been consolidating around this $28,000 level and for me $28,000, just based on weekly resistance, [is] the only real resistance I care about. The fact that we have been stuck to it for so long actually has me a little bit excited.”
Although the trader is currently bullish on BTC, he notes that failure to break above $28,000 will likely lead to a massive sell-off event.
“If this breaks up, we’ll get a huge move. If it breaks down, we’ll probably go towards $23,000-$20,000.”
At time of writing, Bitcoin is trading for $27,968.
IDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney