Popular cryptocurrency analyst DonAlt has outlined the main scenarios for a bullish trend in Bitcoin (BTC) as it trades below $42,000. Here are the details from the crypto expert!
Critical Level in BTC
The cryptocurrency analyst known as DonAlt suggested on his TechnicalRoundup Youtube channel that based on historical price patterns, Bitcoin could rise more than 45% from its current value. However, he warned that BTC could correct itself soon. The analyst stated:
If you compare the consolidation we experienced in 2018 and the subsequent bear market with that of 2021, so far they are strikingly similar. You had a massive rise. Both in 2018 and 2021, you had a big fall from the all-time high. In 2018, you experienced two months of consolidation. In 2021, three months of consolidation followed by another drop. So quite similar. So you have the highs. You have the consolidation. And then this increased in 2023, similar to 2019, but much slower. 2019 was a full continuation. It broke the resistance, and here in 2023, so far we have not managed to do this, but we are trading above it.
Bitcoin ETF Approval Process
The analyst mentioned in January that the possible approval of Bitcoin exchange-traded funds (ETFs) in the spot market could lead to a surge towards the $60,000 level before a sell-off. He then suggested that after dropping to $35,000, Bitcoin could exceed $60,000 and enter a major rally. The analyst commented on the matter:
If you’re going to claim an uptrend, you might say this: We still have 20 days left before closing for this three-month period. If it heads towards a resistance like $60,000, maybe we’ll see a repeat of 2019… I think the ETF will be a news sell event and that the ETF will come in January. So if FOMO drives people to push it up further, the best resistance we have will be $60,000. And then it would be logical to experience negativity for a few months to half a year, a slightly longer period. So basically that means $60,000, then $35,000. And then upwards.
At the time of writing, Bitcoin has seen a slight increase in the last 24 hours, trading at $41,290.
