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Bitcoin (BTC) could fall to levels last recorded in early May if a major support level fails to hold, according to a crypto trader.
The trader pseudonymously known as DonAlt tells 66,500 subscribers of the TechnicalRoundup YouTube channel he’s leaning bearish on the crypto king based on his reading of Bitcoin’s daily time frame.
According to the pseudonymous trader, Bitcoin could drop by up to 15% from the current price if the BTC support level, which has so far held since the flagship crypto asset reached a new all-time high of slightly under $112,000, fails.
“If this support goes, this support between $98,000 and $101,000, I think you could see like a nice quick move towards $90,000 again.”
Source: TechnicalRoundup/YouTube
The pseudonymous trader says Bitcoin’s rally to a new all-time high of around $111,800 late last month is a “false breakout” based on the daily time frame. According to DonAlt, “good breakouts” typically do not retest previous support levels.
“Basically, all the good breakouts did not retest… this one [at slightly under $112,000], a little bit different. That one is retesting, which is a sign of a lack of momentum, a lack of urgency.”
The pseudonymous trader, however, says Bitcoin appears more bullish on the higher weekly and monthly time frames.
“This [weekly] time frame is also bullish. It is less bullish than the monthly, though, I will say that.
This is a clean breakout, this is fine, this is a strong chart on the monthly. The weekly, a little bit less so but still good.”
Source: TechnicalRoundup/YouTube
Bitcoin is trading at $105,713 at time of writing.
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