A popular analyst is outlining one bullish scenario for Bitcoin (BTC) as the crypto king trades below $42,000.
Pseudonymous analyst DonAlt tells his 55,300 subscribers of the TechnicalRoundup YouTube channel that based on historic price patterns Bitcoin could soar more than 45% from its current value.
[adinserter block="1"]However, he warns BTC could correct soon afterward.
“If you compare the consolidation that we had in 2018 and the bear market afterward to this one [in 2021], they’re strikingly similar so far. You had a massive spike. You had one big down candle from the all-time high for both 2018 and 2021. You had two months of consolidation here [in 2018]. Three months of consolidation here [in 2021], and then another nuke. So it’s pretty similar. So you have the high. You have the consolidation. You have the low, you have the high, consolidation, low.
And then this ran up [in 2023] similar to how it did in 2019. But much slower. 2019 was straight up. It just smashed through resistance and here [in 2023] we haven’t so far but we’re trading above it.”
The trader believes that possible approval of spot market Bitcoin exchange-traded funds (ETFs) in January could cause a rally to the $60,000 level before a sell-off. Then, after declining to $35,000, he believes Bitcoin could go on a massive rally past $60,000.
“If you’re going to make the bullish case on this, you could be like, Hey, we still have 20 days on this quarterly before it closes. If this runs up towards resistance at like $60,000, maybe we get a repeat [of 2019]…
I think ETF is going to be a sell-the-news event and the ETF is going to come in January. So if the FOMO (fear of missing out) people push it higher, this is the best resistance we’ve got, which would be $60,000. And it would make sense to have a couple of months to half a year, a little bit longer, of downside afterward. So that would basically imply $60,000 then $35,000. And then upwards.”
Bitcoin is trading for $41,290 at time of writing, up slightly in the last 24 hours.
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