A crypto strategist known for accurately predicting the crypto market bottom in November 2022 is making a comeback to the market. Pseudonymous analyst DonAlt, speaking to the 53,100 subscribers of the TechnicalRoundup YouTube channel, revealed that he is re-entering the market following a brief drop in Bitcoin (BTC) below the $25,000 support level.
DonAlt explained his reasoning for re-entering the market, stating that he faced two choices before opening a new position on Bitcoin. He said:
“We’re at the point where you could make an argument for buying here [around $26,000]. And if you’re wrong you get stopped out and you get to buy at $19,000.”
He further elaborated that he decided to take a trade and buy a small amount of Bitcoin because he anticipated not getting another entry opportunity otherwise.
Regarding his trade idea, DonAlt shared that if it proves successful, he plans to exit the trade after reaching a profit level in the double-digit percentage points. He stated:
“The target is above $30,000, I’ll see how it goes.”
At the time of reporting, Bitcoin was trading at $26,342.
DonAlt also mentioned that if his trade idea is invalidated, he would anticipate a more significant market move. He explained that “capitulation proper” would likely occur if Bitcoin’s price dropped around 5% below the current level, especially if it fell below $24,900.
He emphasized that he is neither overly bullish nor excessively bearish. DonAlt finds this trade interesting because it could be a pivotal moment for Bitcoin. If the trade fails and Bitcoin breaks below $25,000, he predicts a potential capitulation phase that could lead to a drop to $20,000.
In summary, DonAlt, known for his accurate crypto market predictions, has re-entered the market with a Bitcoin position. He sees the current price level as a key point, with the potential for either further gains above $30,000 or a significant downturn below $25,000, which could trigger a market capitulation. These insights provide valuable perspective for investors navigating the ever-changing cryptocurrency landscape.