A cryptocurrency trader who correctly called into the bottom of Bitcoin (BTC) in November and sold its recent top at around $24,700 has now fully re-entered the market.
This time around, pseudonymous analyst DonAlt says he bought BTC at $23,000, which he warns is a make-or-break level in the near term.
“Overall my goal was met and I felt naked not having the position so I bought early.
But if this dump holds like this, I am actually getting bearish signals. This needs to basically pump to invalidate the bear case before the monthly close. Otherwise, we’re going to have some problems…
I think there is quite a bit of risk here. If the month closes like this, we have a bearish monthly and weekly setup. That’s something you don’t necessarily want to fade away.
And if we are showing weakness here, break down over the next couple of days, and the month ends poorly, you might actually consider just closing if we don’t move too low, and then buy back $20,000. I’m not entirely sure yet.
As for Ethereum (ETH), DonAlt says that he does not like the USD chart on the daily, weekly or monthly time frames. However, he says that ETH looks better when paired with BTC.
“I’m looking at the all-time high for ETH since 2018. I think $1,500, that level on the weekly… I wouldn’t necessarily want to see it break because then it starts to double.
As long as we are trading above there, it looks OK, and overall I think the $1500 level is good. If we should bomb, I think that’s a good level to buy, obviously on a low time frame…
I like the ETH/BTC chart and I like the Bitcoin chart, so I can work with both.”
The trader also bought Litecoin (LTC) at the bottom and remains bullish for the longer term. Its current upside target is around $220.
“My goal is $220 right now. The best support is the weekly support at $77…
I think the chances of it playing out are 50-50, so it is a trade that I would be willing to take at any time. So whether I’m in it from $60 or from $90, if I didn’t have position, technically I’d like to be in position with the view that I have.”
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Featured Image: Shutterstock/BB DESIGN STOCK/Natalia Siiatovskaia