A crypto strategist who masterfully rode the crypto rally this year is issuing a warning, saying that a local top might be in for Bitcoin (BTC).
Pseudonymous analyst DonAlt tells his 479,300 Twitter followers that he believes Bitcoin’s rally above $30,000 is a range deviation.
According to the crypto analyst, the range deviation above $30,000 is similar to the range deviation at the bottom when Bitcoin broke below $18,000 in November of last year.
“I’m gonna have to be bearish here for the same reason I was bullish at $16,000. Expecting top to be in until proven otherwise.”
Traders keep a close watch on range deviations as they could signal potential trend reversals after faking out market participants.
Looking at DonAlt’s chart, it appears that his current range for Bitcoin is between $18,000 and $30,000. With BTC now trading at $27,317 and back in the range, DonAlt suggests that the recent rally to $31,000 may be a trap for Bitcoin bulls.
DonAlt also warns that BTC’s market structure and timing looks similar to its price action in early 2021, when Bitcoin rallied from $55,000 to $65,000 in less than two months before collapsing all the way down to $30,000.
According to the crypto analyst, he’s waiting for Bitcoin to drop to a key psychological level or flash signs of strength before considering to re-enter the markets.
“$20,000 or strength is what I’m gonna do anyway. Anything in between likely just gonna be chop for months anyway.”
DonAlt is known in the industry for accumulating Bitcoin, Litecoin (LTC) and XRP in November of 2022. Last week, he said that he had exited his crypto positions after securing big gains on the three large-cap digital assets.
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Source: https://dailyhodl.com/2023/04/23/trader-who-recently-unloaded-crypto-positions-warns-repeat-of-2021-bitcoin-meltdown-heres-his-downside-target/