A closely followed crypto analyst and trader has stated that Bitcoin (BTC) price action is similar to the market peak experienced in November 2021 and that another deep correction may be on the way.
Speaking in a new strategy video he posted on his YouTube channel, DonBottom pseudonymous analyst, MicroStrategy and terra (LUNA), the bulls were unable to push the market higher, and then bears after bears took control.
“I think the first thing we have to assume right now is the ‘downtrend’ and I think this downtrend will happen. A lot of altcoins went up and it was really interesting because we saw people get excited and start buying these altcoins instead of BTC and ETH. At such times such purchases appear all the time. We saw the large BTC purchases made immediately after, but the prices still fell.”
DonAlt, bitcoinHe thinks the rejection of $45,000 is a big red flag for the bulls. According to the crypto analyst, this failed breakout is reminiscent of the market structure where Bitcoin rallied close to $70,000 in November and broke out from its previous all-time high only to start a downtrend in just a few months.
“Bitcoin rallied as high as $70,000 and bounced back, failed to hold $60,000 and this triggered a downtrend. It was very clearly bearish and given that it’s currently daily rather than weekly, it’s the same setup it was on the lower time frame, but still the same setup.
Technically you should accept the downtrend. Your target should focus on the $33,000 to $47,000 range.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.