Renowned technical analyst DonAlt recently shed light on the conflicting signals playing out in Bitcoin’s (BTC/USD) price action. While long-term charts suggest a bullish outlook, short-term movements indicate a bearish trend, leaving traders in a state of uncertainty.
In his latest podcast update, DonAlt zoomed in on Bitcoin’s monthly chart, noting its return to support levels. While not ideal, he doesn’t view this as overly concerning. He expressed his concern if Bitcoin fails to show upward momentum within the next 29 days. Shifting to the weekly timeframe, DonAlt acknowledged the quick retracement from the previous week’s breakout, though he considers the overall outlook ‘not that bad.’ However, he emphasizes the critical need for Bitcoin to maintain support around current levels. Failure to do so, he warns, could lend credence to bearish sentiment.
DonAlt observed that the daily timeframe has technically turned bearish, but he tends to disregard this in the current choppy market conditions. He believes Bitcoin’s next significant move is more likely to be towards $80,000 than $40,000, but he cautions that even if Bitcoin reaches new highs, it could experience a pullback.
As for his own trading position, DonAlt revealed that he holds a small Bitcoin position at around $58,000 and some Ethereum near $2,550. His overall position is roughly break-even, but he acknowledges the possibility of closing with a small loss if the downtrend continues.
DonAlt concluded his analysis by highlighting the challenging nature of trading in the current market, emphasizing that the most successful traders are those who approach everything with a healthy dose of skepticism.
At the time of writing, Bitcoin is trading around $61,750, representing a 2.7% increase over the past 24 hours. The influence of Bitcoin as an institutional asset class will be a focal point of discussion at Benzinga’s upcoming Future of Digital Assets event on November 19.
This analysis provides valuable insights for traders and investors navigating the dynamic world of cryptocurrencies. Understanding both the long-term and short-term trends is crucial for making informed decisions in this volatile market.
