A trader who sold Bitcoin (BTC) near its all-time high and re-entered the market at a massive discount in November is updating his outlook on the crypto markets.
The pseudonymous trader, who goes by the name DonAlt, tells his 449,000 Twitter followers that bears are in a precarious position after Bitcoin’s run from $15,731 on November 21st to its Thursday high of $19,117.
“Bulls gave back everything in the bear, then the traders did in the chop now it’s the bear’s turn. The interesting bit about the bears is that often times price only needs to go up 20-30% for them to lose it all. A bear market rally could wipe out almost all bears.
Technically in my mind, anything sub $30,000 is just a bear market rally. If you’re a bear and you’re not accounting for the possibility of $30,000 I think you’re going at it a little blue-eyed. We can just nuke but there is a non-zero chance we retest those levels in my opinion.”
At the start of January, DonAlt debuted a chart showing key levels of resistance that BTC needs to break through in order to maintain momentum.
So far, Bitcoin has performed as he hoped. The top cryptocurrency by market cap is now knocking on a historic line on the chart at about $19,000.
DonAlt jokes that if BTC rises above that line, it will become the “future of France” – a play on the notion that Bitcoin is the future of finance.
If BTC can smash through $19,000 in the week ahead and continue to outpace the altcoin market, the trader forecasts relatively smooth sailing all the way to $22,500.
“It’s maintaining boys. Alts [are] not able to follow BTC on the run-up… Another day like today after the weekend and we’ll see some fireworks in the crypto markets.”
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