One of the few crypto traders who flipped bullish and bought Bitcoin at its bottom in November says he may be close to unwinding some of his positions.
In a new edition of Weekly Open, the pseudonymous trader DonAlt says the market has been acting like it did in 2020, with BTC showing significant strength and quickly recovering after every dip.
However, at this point, the trader says BTC may be reaching a point where it’s smart to sell and take some profit.
He points to a consolidation zone at about $30,000 as a point where he’ll consider reducing his exposure. Back in May and June of last year, that level was a key area of consolidation for the top crypto asset.
“I think we’re getting closer to levels where you actually want to be looking to sell at.
I was stupidly bullish at $16,000, I was stupidly bullish at $19,000, $20,000 – but mid-$20,000’s to low $30,000’s is I think where you start running into trouble…
Given we have this kind of [historic] consolidation here [at $30,000], I think at that point, the next push up is probably one to sell.”
Despite his newfound sense of caution, DonAlt says anything goes if Bitcoin can crack $32,000.
“Above $32,000 it starts getting into a level where you just have to shut off your brain and basically go with the flow I guess.
But that’s going to be tough for me too. I think anywhere in the $30,000 area is probably where I’m gonna be starting to unwind some positions, kind of take profit.”
DonAlt also bought Litecoin (LTC) near its November bottom of about $60. Although the coin is now at $96 and he’s concerned about BTC hitting resistance, the trader says he has no plans to sell that position even if BTC does hit a wall in the days and weeks ahead.
“I’ll probably hold my Litecoin still because I like the setup. But in general if Bitcoin does flip $32,000, it’s gonna be really tough to trade other than just hold.
Which is why I don’t want to sell everything if we go further up, because I know that I’m gonna be too stupid to just turn my brain off and buy $32,000 if we flip.”
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Featured Image: Shutterstock/Vadim Sadovski/Chuenmanuse
Source: https://dailyhodl.com/2023/02/20/trader-who-called-exact-bitcoin-bottom-issues-alert-to-crypto-traders-warns-it-may-soon-be-time-to-sell/