Prominent crypto analyst DonAlt has issued an urgent advisory for Bitcoin (BTC) investors, highlighting that the cryptocurrency may be on the verge of a new upward momentum, based on technical indicators.
What Caused Bitcoin’s Recent Price Drop?
DonAlt pointed out that a significant correction in August, which saw Bitcoin dip below the $50,000 mark, was a necessary adjustment for the market. He believes this decline will help facilitate a more robust recovery for Bitcoin as it begins to stabilize.
What Are the Risks of Market Weakness?
However, the analyst warned that any indication of weakness could plunge Bitcoin into a lengthy downward trend. He noted that if the price were to fall below $58,000, it could trigger a bear market lasting anywhere from six to eighteen months. He stated:
The market has been shaken so aggressively that an upward movement after such a long consolidation is a fair assumption.
How Important is the $68,000 Resistance Level?
DonAlt highlighted the $68,000 area on the daily chart as a crucial resistance level for Bitcoin. If the price surpasses this threshold without a pullback, he suggests that bearish sentiment could be misplaced, stating:
If we exceed the $68,000 level without a pullback, we can assume that bears might be wrong. Therefore, a cautious approach is necessary.
Bitcoin was trading at approximately $63,244 at the time of this report, reflecting a decrease of over 2% for the day. Market conditions will play a significant role in shaping Bitcoin’s medium-term outlook, according to DonAlt.
- A strong upward trend is predicted if Bitcoin maintains its current support levels.
- Breaking key support levels could necessitate longer market corrections.
- Investors must closely monitor market signals to navigate potential risks.
Bitcoin appears poised for potential upward movement from a technical perspective, yet it is crucial for investors to remain vigilant about levels that could indicate future market volatility.