Top Trader Warns of November 2018-Style Capitulation for Bitcoin After ‘Massive Range Breakdown’

By The Daily Hodl July 07, 2024 In Bitcoin

A veteran trader says he’s hesitant to flip bullish on Bitcoin (BTC) just yet considering the possibility of another November 2018-style crash.

In November of 2018, BTC broke down below $6,000 after consolidating in a narrow range for over six months, and while many were eager to buy the dip, Bitcoin didn’t bottom out until it nearly touched $3,000.

Pseudonymous trader DonAlt tells his 568,000 followers on the social media platform X that he thinks traders look too eager to be bullish on BTC after Bitcoin took out its psychological support at $60,000.

“I personally think people are flipping bullish here too early.

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I still remember when $6,000 broke and people immediately rushed in to buy $5,500.

It didn’t end too well, [and] that’s why I’m gonna chill for a bit until it’s clear where this sh*t wants to go…

Anyway, a weekly close above $60,000 would be giga bullish. A weekly close at $52,000 would make me wanna look for bounce plays next week. Anything that isn’t either of those is fake and… uninteresting garbage that deserves no attention.”

DonAlt says BTC has undergone a “massive range breakdown” after failing to hold $60,000, and Bitcoin will likely need time and confirmation to recover.

“I don’t think it makes much sense to be too aggressive. There is plenty of time and space if we actually reclaim the range to just go full retard and I’ll happily join.

Here? I personally just don’t see the risk/reward.”

At time of writing, Bitcoin is trading at $57,743, up 2.35% on the day.

Generated Image: DALLE3

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