Benzinga - Bitcoin’s (CRYPTO: BTC) bearish momentum over the past week prompted one of Crypto X’s most well-known swing traders to predict that “bears got a chance.”
What Happened: Pseudonymous cryptocurrency trader Crypto DonAlt made his case in a YouTube video titled “The Curious Case for Bitcoin Weakness.” He emphasized the current situation strongly suggests a decent pullback opportunity, and being bearish for the first time means being “sane.”
Technical signs reflecting Bitcoin’s weakness:
- Failing to hold above key levels
- Exhibiting new lower lows on lower timeframes, such as the 4-hour chart
The lower and higher timeframes, along with technical indicators and positioning, provide bears with a genuine opportunity to short Bitcoin for the first time in a while. However, with the high risk of a bullish rally, shorts can lead to losses.
From the current price levels of 60,000 to 70,000, the trader estimates a 40% pullback, which could push the price down to around 45,000, though that is highly unlikely. A pullback finding support at around 60,000 before bouncing back up to 65,000 to 66,000 seems more realistic.
Also Read: Bitcoin Down 2% To $71K, Faces ‘Resistance’ Says Trader Who Targets This Price For A Correction
Why It Matters: Over the past 24 hours, Bitcoin prices have traded down 2% and are currently changing hands at $67,087. This level is defined as being below the red line, which is “assuming down,” according to CryptoDonAlt.
Through his technical chart analysis, he provides a three scenarios and concludes Bitcoin bears have a chance, but it remains to be seen if they will seize the opportunity.
$BTCAbove red box (71-73) giga bull continues
Above red line (68.5) is a bit of a toss-up
Below red line assuming down
Now that the daily closed there is technically a short setup on the monthly, weekly, and the daily timeframe
Bears got a chance but will they take it? pic.twitter.com/fu1qQcNj19
— DonAlt (@CryptoDonAlt) March 18, 2024
Another crypto trader and analyst, Moustache (@el_crypto_prof), states Bitcoin prices have broken through the blue line in the Mayer Multiple-Indicator and are close to or above the all-time high. “The parabolic move started a short time later.”
What's Next: Through his technical chart analysis, DonAlt provides a few scenarios and concludes that Bitcoin bears have a chance, but it’s uncertain whether they will take it.
One option would be to close short positions or buy at $60,000 rather than holding shorts, as the long-term bias remains bullish. Another trade could be taking a short position now with a stop loss above $71,000 and a target of $45,000-$55,000. The invalidation level for the short is $72,000-$72,500, as that would reclaim the latest dump.
Ethereum (CRYPTO: ETH) is likely to outperform other altcoins relative to Bitcoin. “Solana and Dogecoin” are noted as coins that could have good short-term bounce potential in a liquidation event.
With the Bitcoin halving just around the corner, it remains to be seen how the crypto king’s price momentum unfolds.
Read Next: Decoding Bitcoin, Ethereum, And Dogecoin Pullbacks: A Technical Analysis
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.