Sidelined Capital Could Flood Back Into Bitcoin (BTC) if This Happens, According to Top Crypto Analyst

A closely tracked crypto trader is unveiling a scenario where traders waiting on the sidelines would come flooding back into Bitcoin (BTC).

In a new strategy session, DonAlt says he’s keeping a close watch on the 200-week moving average, an indicator that has marked the bottom for BTC during its previous bear markets.

Track live crypto price of 10000+ coins!

According to DonAlt, a rally above the 200-week moving average would ignite BTC’s bullish momentum.

“The [200-week moving average] is in an area where I think if we get back above [it], it’s pretty clear that it’s going to go higher. They actually offer quite the trade opportunity… If we start closing back above it, I think you’re going to see a bunch of sidelined capital move in, so it’s probably going to go up.”  

The 200-week moving average is currently hovering around $22,500.

DonAlt also says if Bitcoin manages to rally, he’s looking at $28,000 as his initial target. He highlights that his target price could be a lot higher depending on the market structure of the rally.

“If we shake off what we’ve been going through, I don’t want to sell $28,000 probably. But it depends on how we get there. If we get that [scam] action but with just a much much higher squeeze towards $28,000, I’m going to be the first out of the door. That’s not what I want to be seeing… because then I think what’s going to happen is it’s going to squeeze into it and then slow-bleed back down…

But if we round out here and walk up towards like $23,000 to $24,000 and then squeeze, so build a base, I think there’s not really a good reason to sell [at] $28,000. So I’m going to hold on to my stuff and try higher.”

At time of writing, Bitcoin is changing hands at $20,235, up over 5% on the day.

Related:  Someone Is Buying It Up, and Reason Remains Unknown


Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix


Check Latest News Headlines



Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/fran_kie/Drawlab19

Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: