Bitcoin: Here is Which Level Could Signal Bullish Reversal

Bitcoin

Bitcoin: Here is Which Level Could Signal Bullish Reversal

A trader and analyst who accurately predicted the cryptocurrency market bottom in November 2022 is now warning that Bitcoin (BTC) may be poised for a potential downtrend.

In a recent video, DonAlt, a pseudonymous trader with 66,200 subscribers on the YouTube channel, cautioned that Bitcoin remains at high risk of falling in value despite its recent surge.

High Risk of Rejection at Current Levels

DonAlt expressed concerns that Bitcoin is in a “danger territory,” where it could face a strong rejection at its current price levels. “I dont want to bull talk too much while we are in the area where we can get rejected easily,” he stated. The analyst believes BTC is at a critical point, where either a sharp price decline or a brief surge could occur, potentially leading to a downtrend.

“If this doesnt get rejected here [in the mid-$80,000s], where is it going to？ You can obviously hope for a wick towards $90,000, $91,000. I think that would be the only real acceptable bearish setup to take,” DonAlt explained. He added that for those with a bearish outlook, this price level could present an optimal setup for entering a short position, particularly if Bitcoin fails to sustain any upward momentum.

Which Level Could Be Key for Bulls

However, DonAlt noted that if Bitcoin manages to surge past the $90,000 level and maintain momentum, it could signal a stronger bullish trend. He stated that a close above $90,000 would be the “best course of action” for the bulls, as it would likely trigger further upward movement in the market.

“If we start doing this, poke our head back above $90,000 favorably, obviously if the macro situation changes alongside with it, I think the next candle is going to be like this [to around $95,000],” DonAlt explained. He believes that with favorable macroeconomic conditions, Bitcoin could eventually trade at $110,000 to $120,000, marking a significant bullish breakout.

Bullish Scenario For Bitcoin

DonAlt‘s ideal scenario for Bitcoin’s price movement includes a setup where Bitcoin breaks above the $90,000 resistance level, setting the stage for a move toward $110,000 to $120,000. He suggested an entry point near $90,000 with a stop loss at $77,000, emphasizing that this would offer a favorable risk-to-reward ratio for those looking to position for a further upside move.

“The moment we get back above $90,000, theres a decent setup, stop loss down here [at $77,000], entry somewhere there [around $90,000], and then the target above $110,000 into maybe $120,000-$130,000,” DonAlt said, presenting an optimistic view for Bitcoin if the price manages to regain strength.

Conclusion: Bitcoins Future Is at a Critical Juncture

DonAlt‘s analysis highlights the critical juncture Bitcoin finds itself at, where a rejection at current levels could send the price lower, while a successful breakout above $90,000 could initiate a new bullish cycle. The trader’s warning about the potential downtrend underscores the importance of monitoring Bitcoins price action closely in the coming weeks, especially given the uncertainty surrounding broader market conditions.