Popular crypto analyst DonAlt presented a striking analysis on the recent price movements of Bitcoin, the leader of the cryptocurrency market. After last month’s mostly bearish price movements, DonAlt thinks Bitcoin is heading towards a best-case scenario. In particular, he notes that Bitcoin gained strong momentum after pulling back somewhat from $60,000 levels earlier this month, and soon returned to its fundamental levels.
According to DonAlt, this false downward move could actually be an important catalyst that could trigger an upward breakout for Bitcoin. The analyst describes this situation as a “trap” and states that such situations usually provide large profits to investors. According to him, the downward trends seen on the daily time frame may be too small and temporary to affect the upward trends on the weekly and monthly time frames. Therefore, the impact of short-term fluctuations on long-term trends is an important point that investors should consider from a strategic perspective.
“It’s just a trap. I love traps. “Almost always, when the daily timeframe is bearish, but the weekly and monthly timeframe is bullish, you usually make quite a lot of money when things go wrong.”
DonAlt’s analysis offers valuable perspective on how to approach volatility and price fluctuations in the cryptocurrency market. Besides, although DonAlt thinks BTC will rise, he does not expect the crypto king to see all-time highs yet. According to the analyst, Bitcoin gained over 170% from October to March and BTC may need more time to “digest” the move before moving higher.
“This is something I said a few weeks ago: The longer things last, the better for the bulls because we’re basically digesting the move we made. This was a really aggressive move. Usually you have to digest them by having the entire market implode, but you can also digest them by going sideways long enough. (…)
Overall I think this looks really good as long as you get $62,500 back and don’t lose $61,000 again.”
NEWS CONTINUES BELOW
At the time of writing this article, Bitcoin is trading at $64,556.
In conclusion, this analysis by DonAlt on Bitcoin offers an important perspective that those trading in the cryptocurrency market should consider. He emphasizes that when investing in Bitcoin and other crypto assets, a logical and strategic approach should be adopted rather than emotional reactions. In this way, it may be possible to better evaluate the opportunities brought by market fluctuations.
You can access current market movements here.
