Crypto analyst and strategist DonAlt issued a significant warning to Bitcoin (BTC) investors. He noted that, from a technical standpoint, Bitcoin might enter a new upward trend.
Bitcoin’s Deep Correction
DonAlt explained that the deep correction in August, which caused BTC to fall below $50,000, provided necessary leverage clearing for the largest cryptocurrency to move more robustly. He anticipates the market showing signs of recovery following this correction.
Risks from Signs of Weakness
The analyst emphasized that any signs of weakness in the current market conditions could lead Bitcoin into a prolonged downward trend. DonAlt mentioned that if the price breaks below $58,000, a bear trend could last between 6 to 18 months.
Significant Resistance Level at $68,000
DonAlt identified the $68,000 region on the daily chart as a critical level for Bitcoin. He suggested that if the price moves above this level, bulls will be positioned correctly and bears will likely be mistaken.
In conclusion, Bitcoin is considered to be in a favorable position for upward movement from a technical perspective. However, paying attention to market breaking points is vital for investors to manage their risks.
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