Crypto Analyst DonAlt Weighs Scenarios As Bitcoin Sits Below $50K
A well-known crypto trader and analyst, known in the industry as DonAlt sees two potential scenarios for Bitcoin as the number one crypto is having a hard time below $50,000.
The analyst remains bullish on Bitcoin as long as it stays above a certain key level.
“The weekly [chart] is still bullish as long as you’re holding $45,000, and the daily is still bullish.”
If Bitcoin falls below the key support area, there is a good chance it will accelerate down to around $40,000. If that level breaks, BTC will “completely roll over,” says DonAlt. If it holds, he predicts Bitcoin will be the second leg up.
Before that, he is waiting for the market to give more signals.
“So if you want to be super bearish, I think it’s still sane to wait for, let’s say if we lose $45,000 on the weekly and start losing $40,000 on the daily. Then, it starts looking like the complacency top is in… If you’re [a] bull, you want to be positioning for bullish price action… The bears have invalidation above $50,000. The bulls have an invalidation below $40,000.”
Despite being neutral on BTC, DonAlt also does not discount the possibility of a Bitcoin supercycle.
“It’s kind of funny how we have the ICO [initial coin offering] stuff mirrored in the NFT [non-fungible token] space, and then we have the low-cap [whatevers] pumping as well. Kind of reminds me of 2018, not going to lie. But I mean maybe it’s the supercycle, and honestly, I don’t want to discount that idea. I don’t think it’s crazy to play for it, given that positioning yourself for it is going to be really hard the moment it’s going to be proven true. The moment that everyone agrees it’s a supercycle or whatever, it’s going to be impossible to get in.”
