A top trader who rode the 2023 crypto breakout warns that Bitcoin (BTC) bulls have about a week to avert a potentially catastrophic scenario.
Pseudonymous analyst DonAlt tells his 532,100 followers on the social media platform X that Bitcoin’s monthly chart is very close to flashing a strong bearish signal.
The trader shares a chart showing that BTC was rejected at the high time frame resistance of $70,000, suggesting that Bitcoin’s multi-month rally from around $20,000 may be coming to an end.
“Monthly needs to close green otherwise that’s a strong sell signal on the most important high time frame we’ve got.
A close below $56,000 would be catastrophic.
[Seven] days to go, good luck bulls.”
Zooming in, DonAlt says that Bitcoin bulls must hold BTC’s immediate support at $65,000 to have a shot at ending the current correction. Otherwise, DonAlt warns that BTC is at risk of seeing prices below $60,000.
“Bulls tried but so far haven’t managed to make any significant progress A close below $65,000 might as well be a close below $60,000 in my opinion… Bulls and bears fighting it out at the last line of defense.”
Looking at the trader’s chart, he appears to suggest that Bitcoin is currently forming a head-and-shoulders formation – a technical pattern that may foreshadow the beginning of a downtrend.
At time of writing, Bitcoin is trading for $64,592.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxCheck Price Action
Follow us on X, 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 losses 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
