A trader who caught the 2023 crypto breakout says that Bitcoin (BTC) still looks strong even after breaking below $40,000 last week.
In a new strategy session, pseudonymous analyst DonAlt tells his 56,700 YouTube subscribers that while the approval of Bitcoin exchange-traded funds (ETFs) turned out to be a sell-the-news event, BTC still managed to avoid a total price collapse.
According to the trader, the absence of immense BTC selling is a constructive sign for the crypto king.
“I’ve been liking this price action for the last couple of days. I think just in general with how the ETF played out and how we got the sell-the-news event, you would have reasonably expected prices to go lower. But they were very hesitant to do so, and every time they went it was just a little bit of a trickle-down instead of the typical sell-the-news thing where you just get massive volume and just completely craters.
It could be enough. I’m not team bear anymore. If anything, I’m team wanna-be bull.”
The trader also says that Bitcoin appears to be consolidating within a strong uptrend. He says BTC will likely regain its bullish momentum once it takes out resistance at $44,000.
“The weekly time frame, if you just look at that, if it closes like this and starts breaking out above $44,000…. there’s no good reason to be bearish. Obviously, it can go down afterward but just from a TA (technical analysis) perspective, this is literally as sideways as it can get in a very strong trend.
You would expect that if that sideways range breaks to the upside that you just get follow-through.
Not looking too bad if it continues like this for the weekend and then we have a little bit of a strong showing on Monday. I’m not hating on this chart.”
At time of writing, Bitcoin is trading at $42,416, up over 9% from its seven-day low of $38,678.
I
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxGenerated Image: DALLE-3