Trader who recently unloaded crypto positions warns of a repeat Bitcoin meltdown in 2021 – here is his downside target
A crypto strategist who has masterfully ridden the crypto rally this year is issuing a warning, saying a local spike could be betting on Bitcoin (BTC).
Pseudonymous analyst DonAlt is telling 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 fell below $18,000 in November last year.
“I have to be bearish here for the same reason I was bullish at $16,000. I expect Top to be there until proven otherwise.”
Source: DonAlt/Twitter
Traders keep a close eye on range deviations as they could signal potential trend reversals after fooling market participants.
Looking at DonAlt’s chart, its current range for Bitcoin appears to be between $18,000 and $30,000. With BTC now trading at $27,317 and back in the range, DonAlt is suggesting that the recent rally to $31,000 could be a trap for bitcoin bulls.
DonAlt also warns that BTC’s market structure and timing looks similar to the price action seen in early 2021, when Bitcoin surged from $55,000 to $65,000 in less than two months before collapsing as low as $30,000.
Source: DonAlt/Twitter
According to the crypto analyst, he is waiting for Bitcoin to drop to a key psychological level or flash signs of strength before considering re-entering the markets.
“$20,000 or strength is what I’m going to do anyway. Anything in between will likely only be hacked for months anyway.
DonAlt is known in the industry for accumulating Bitcoin, Litecoin (LTC) and XRP in November 2022. Last week, he said he exited his crypto positions after securing big gains on the three large-cap digital assets.
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