Top trader DonAlt has issued a warning to Bitcoin (BTC) investors, stating that the monthly chart is on the verge of signaling a bearish trend.
Monthly Close Critical
According to DonAlt, Bitcoin needs to close the month above $56,000 to avoid a “catastrophic” sell signal. If the monthly close falls below this level, it could trigger a sharp decline in prices.
Immediate Support
To prevent a further drop, Bitcoin bulls must hold the immediate support level at $65,000. A break below this level could send prices tumbling towards $60,000.
Head-and-Shoulders Pattern
DonAlt’s chart suggests that Bitcoin is forming a head-and-shoulders pattern, which typically indicates a reversal from an uptrend to a downtrend.
Time Running Out
DonAlt emphasizes that Bitcoin bulls have only a week to prevent the bearish scenario from unfolding. If they fail to hold the critical support levels, a significant correction could be on the horizon.
