A seasoned trader remains cautious about turning bullish on Bitcoin (BTC) due to concerns over a potential market crash reminiscent of November 2018.
In that period, BTC plummeted below $6,000 after being range-bound for over six months. Despite optimistic buying sentiment at the $5,500 mark, Bitcoin continued to slide until it nearly touched $3,000.
Pseudonymous trader DonAlt, addressing his 568,000 followers on X, observes a premature bullish sentiment following Bitcoin’s breach of the $60,000 psychological support. He cautions against hasty optimism, drawing parallels to past market behavior:
“I believe it’s premature to turn bullish now. I recall when Bitcoin dipped below $6,000 and buyers rushed in at $5,500. It didn’t end well, which is why I prefer to wait until the direction becomes clearer… Anyhow, a weekly close above $60,000 would be highly positive. A close around $52,000 would lead me to seek bounce opportunities next week. Anything in between is insignificant noise that doesn’t warrant attention.”
DonAlt describes BTC’s recent failure to hold $60,000 as a “significant range breakdown,” suggesting that Bitcoin will likely require time and confirmation to regain stability:
“I don’t advocate for aggressive moves at this juncture. If we manage to reclaim the range, there’ll be ample opportunity to fully engage. For now, the risk/reward ratio doesn’t seem favorable to me.”
As of the latest update, Bitcoin is trading at $57,743, marking a 2.35% increase for the day.
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