A seasoned Bitcoin trader is urging caution, warning that the cryptocurrency could be headed for another major crash similar to the one that happened in November 2018.
A Repeat of 2018?
Back in 2018, Bitcoin fell below $6,000 after a long period of trading in a narrow range. While many investors jumped in to buy the dip, the price continued to plummet, eventually reaching nearly $3,000.
The trader, known as DonAlt, believes that the recent drop below Bitcoin’s key support level of $60,000 could signal a similar scenario. He’s concerned that traders are too quick to turn bullish after this drop.
DonAlt’s Take on the Market
“I think people are getting too excited too soon,” DonAlt says. “I remember when Bitcoin broke below $6,000, everyone rushed in to buy at $5,500. It didn’t end well, and that’s why I’m going to wait and see where things are headed.”
DonAlt sees the recent drop as a “massive range breakdown” and believes Bitcoin needs time to recover. He’s not convinced the risk of another crash is worth the potential reward of buying now.
What to Watch For
DonAlt suggests watching the weekly closing price of Bitcoin:
- A close above $60,000 would be a strong bullish signal.
- A close at $52,000 would indicate a potential bounce in the following week.
- Anything else is “fake and uninteresting garbage” that shouldn’t be considered.
While Bitcoin is currently trading slightly higher, DonAlt’s warning serves as a reminder that the cryptocurrency market can be volatile and unpredictable. Investors should always do their own research and proceed with caution.
