According to a trader who successfully rode the Bitcoin (BTC) breakout rally in 2023, the cryptocurrency king is currently hovering at a zone that provides bears the highest reward with the least amount of risk.
According to the pseudonymous analyst DonAlt, Bitcoin is currently trading below his “indecision” mark, which is somewhere around the $30,000 price area. DonAlt shares this information with his 482,300 followers on Twitter.
Bitcoin reportedly retested the indecision level as resistance, which indicates that a deeper correction may be on the horizon for BTC. This information was provided by a cryptocurrency strategist.
“Had a really decent week, but unfortunately it looks like it’s going to close with a bearish retest of the indecisive zone. Maximum risk:reward for short trades at this point, but I’d rather just wait till it’s bullish again before getting involved. It makes no difference to me whether that comes in at a higher or lower price.
In terms of DonAlt’s downside objective for Bitcoin, he believes that the price of BTC might go as low as $20,000 and he would still be in a macro-bullish position. Even at $20,000, the monthly would be in a bullish position. Therefore, there is no point in selling if you are not really concerned about a drop in price.
DonAlt is also sounding the alarm, claiming that Bitcoin may punish leveraged traders as long as the cryptocurrency is trading at a price that is above 20,000 dollars but is less than 30,000 dollars.
“Everything between $30,000 and $20,000 is a complete and utter fabrication. We are currently in the phase of the market in which we are killing out all of the leverage traders, and it will move as far up or down in those borders as it needs to in order to do so.