A widely followed crypto analyst is issuing a warning on Bitcoin (BTC), saying that it could witness an extremely bearish scenario even if it surges past a psychological level.
In a new strategy session on the TechnicalRoundup YouTube channel, pseudonymous crypto analyst DonAlt says that a severe correction for the crypto king after it breaches $70,000 would deplete all bullish momentum.
According to the strategist, the top crypto asset by market cap looks bullish on the weekly time frame, but the situation can abruptly change if BTC witnesses a fake breakout.
“We made a new high close last week and unless Bitcoin kind of breaks below $62,000, I think I’m just going to assume that’s bullish on the weekly time frame, and then if it loses that, I think that’s hyper bearish…
[Bitcoin] could break out and still be bearish. If a breakout above $70,000 happens and then gets immediately rejected, that would be the most bearish chart you could draw. Realistically, that would be more bearish and turning around from where we are right now and going down…
Basically, you get all the hype back in and then you just dump on everyone, that would make the chart look so much worse than if you just leave everything in place [where] there’s a resistance that we’ve tested four times already or three times depending on the time frame.”
Bitcoin is trading for $67,707 at time of writing, a 1.18% increase during the last 24 hours.
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