A crypto strategist who successfully rode the crypto rally this year is issuing a warning, predicting that Bitcoin may reach a local top (BTC).
DonAlt, a pseudonymous analyst with 479,300 Twitter followers, believes Bitcoin’s rally above $30,000 is a range deviation.
The range deviation above $30,000, according to the crypto analyst, 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.”
Source: DonAlt/Twitter
Traders pay close attention to range deviations because they can indicate potential trend reversals after faking out market participants.
According to DonAlt’s chart, his current Bitcoin range is between $18,000 and $30,000. DonAlt believes that the recent rally to $31,000 may have been a trap for Bitcoin bulls, with BTC now trading at $27,317 and back in the range.
DonAlt also warns that the market structure and timing of BTC appear to be 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 to $30,000.
Source: DonAlt/Twitter
Before considering re-entering the markets, the crypto analyst says he’ll wait for Bitcoin to drop to a key psychological level or show signs of strength.
“$20,000 or strength is what I’m gonna do anyway. Anything in between likely just gonna be chop for months anyway.”
DonAlt is well-known in the industry for amassing a large amount of Bitcoin, Litecoin (LTC), and XRP in November 2022. He announced last week that he had exited his crypto positions after making significant gains on three large-cap digital assets.
