Renowned technical analyst DonAlt believes Bitcoin’s (BTC/USD) weekly close could mark a significant market structure break. However, he strongly cautions against overanalyzing specific price levels on higher timeframes, emphasizing the need for a consistent approach to interpreting market signals.
In his latest podcast update, DonAlt stressed the importance of maintaining a consistent methodology when analyzing crypto market structure. He highlighted that discussions about higher highs and lows can be noisy, and instead, the focus should be on how these signals are interpreted and whether that interpretation is consistent.
For Bitcoin, DonAlt has identified a key area to watch on the weekly timeframe – the $61,000-$64,000 range. He believes a weekly close above $64,200 is essential for bullish continuation. Two potential scenarios after a breakout are aggressive continuation or a dip and continue, which in market structure terms translate to higher high continuation or higher high, higher low continuation.
DonAlt also highlighted the weekly open around $65,500 on lower timeframes as a crucial pivot point, suggesting traders can utilize it for both conservative and aggressive strategies. He outlined his reasoning, stating that given the current weekly support zone, a green weekly close would necessarily have to occur above the weekly open, regardless of a strong week or a potential trap scenario.
Turning to Ethereum (ETH/USD), DonAlt sees $3,000 as a key level signifying strength. However, he acknowledges that Ethereum has been relatively weaker than Bitcoin lately. He remains cautious on altcoins in general, expressing a preference for Bitcoin or select alternatives for bullish positioning.
DonAlt emphasizes the importance of a consistent approach to market analysis, rather than constantly switching between different timeframes, chart types, or specific price levels. One suggested strategy is to capitalize on the transition from bearish to bullish sentiment around the weekly open. Traders can choose to buy below the weekly open anticipating a bullish move or sell above the weekly open if bearish, aiming for the opposite side of the market.
With Bitcoin’s growing influence as an institutional asset class, the upcoming Benzinga Future of Digital Assets event on November 19 is expected to provide valuable insights into this developing landscape.
