An experienced trader remains cautiously optimistic about Bitcoin (BTC) despite a potential repeat of the November 2018 crash. Earlier this month, BTC underwent an extended consolidation period, dropping below $6,000 and bottoming out near $3,000 despite initial bullish enthusiasm.
The analyst known as “DonAlt” noted that traders swiftly turned bullish after Bitcoin recently broke below the psychological support level of $60,000. He recalled a similar sentiment in 2018 when BTC breached $6,000, prompting many to buy at $5,500 only to see further significant declines.
“DonAlt” stated, “A weekly close at $52,000 would have me looking for bounce opportunities next week. Anything that isn’t these things is fake…boring garbage not worth paying attention to.”
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He further pointed out that Bitcoin has experienced a “massive range collision” after failing to hold $60,000, implying the need for time and confirmation for BTC to recover. The analyst cautioned against excessive aggression in the current market conditions, emphasizing the necessity for patience and careful assessment of risks and rewards.
“I think being overly aggressive doesn’t make sense. If we really reclaim ranges, we’ll have all the time and space to go all-in. Here? Personally, I just don’t see the risk/reward,” he added.
