Bitcoin, the most popular cryptocurrency of recent years, experienced a great rise in 2023. The leading cryptocurrency started from $ 16,000 and rose to $ 31,000 during the year. This rise attracted the attention of many investors, and different predictions began to be made about the future of Bitcoin. A popular analyst who correctly predicted the rise in question gave a current warning for Bitcoin.
The analyst, known by the nickname DonAlt of the crypto money market, thinks that Bitcoin’s rally above $ 30,000 is a range deviation. The term “range deviation” is used when a crypto-asset goes outside of its normal price range over a period of time.
According to the crypto analyst, the range divergence above $30,000 has been seen in Bitcoin price before. had happened. This date, which the analyst draws attention to, is November of last year:
“I would need to show a bearish bias here for the same reason that I would be bullish at $16,000. I expect the summit to be there until proven otherwise.”
Traders watch range divergences closely as they can signal a reversal of ongoing trends. Looking at DonAlt’s chart, its current range for Bitcoin is between $18,000 and $30,000. BTC is currently trading at $27,625. DonAlt suggests that the recent rally to $31,000 could be a trap for Bitcoin bulls.
DonAlt also warns that BTC’s market structure and timing is similar to the price action of early 2021, when Bitcoin rose from $55,000 to $65,000 to $30,000 in less than two months.
According to the crypto analyst, Bitcoin can be expected to drop to a significant psychological level or show signs of strength before considering re-entering the markets.
Koinfinans.com As we reported, DonAlt started accumulating Bitcoin, Litecoin (LTC) and XRP in November 2022. He said last week that he was exiting his crypto positions after making huge gains in three major digital assets.
You can follow the current price action here.