Bitcoin Bulls Have a Week to Avert Catastrophic Scenario, Warns Top Analyst
A prominent trader, known as DonAlt, has issued a warning to Bitcoin bulls, stating that they have approximately one week to prevent a potentially catastrophic scenario for the cryptocurrency. According to DonAlt, Bitcoin’s monthly chart is on the verge of flashing a strong bearish signal, indicating that the multi-month rally from $20,000 could be coming to an end.
Monthly Chart Signal
DonAlt shared a chart showcasing Bitcoin’s rejection at the high time frame resistance of $70,000. This rejection suggests that the cryptocurrency’s impressive rally may be reaching its conclusion. The trader emphasized the importance of the monthly chart closing in green and stated that failure to do so would signal a strong sell signal.
- A close below $56,000 would be considered catastrophic.
- Bulls have approximately seven days to prevent this scenario.
Immediate Support
Zooming in on Bitcoin’s immediate support level, DonAlt highlighted the importance of maintaining the $65,000 mark. If bulls fail to hold this level, there is a risk of Bitcoin dropping below $60,000 and entering a deeper correction.
- A close below $65,000 is comparable to a close below $60,000 in DonAlt’s opinion.
- Bulls and bears are currently battling it out at this crucial support level.
Head-and-Shoulders Formation
The trader’s chart analysis indicates that Bitcoin might be forming a head-and-shoulders pattern. This technical pattern often precedes a downtrend in price. At the time of writing, Bitcoin is trading at $64,592.
Hot Take: Bitcoin Bulls Under Pressure
Bitcoin bulls are facing a critical moment as the cryptocurrency’s price hovers near crucial support levels. With the monthly chart on the verge of flashing a bearish signal, failure to close above $56,000 could have catastrophic consequences. The next seven days will be crucial in determining whether Bitcoin’s multi-month rally will continue or come to an abrupt end.
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