As Bitcoin (CRYPTO: BTC) prices dropped below $64,000 in Monday trading, veteran crypto analyst DonAlt sees potential for a significant breakout but urges traders to remain cautious.
What Happened: In the latest podcast update, DonAlt highlighted the importance of Monday's monthly close, noting it could be "the 18th close above $65,000 or above $58,000 rather." He sees the $64,000-$65,000 area as a key resistance level to watch.
Referring to Bitcoin's recent consolidation around the $58,000-$65,000 range, he said, "I think there's a very high chance and much higher than breaking it, that that we're just going to go up from here." However, he warned that if Bitcoin fails to break higher, it could signal "another lengthier bear market."
On shorter timeframes, DonAlt identified the recent daily engulfing candle as a potential short-term support, with its low around $62,600 serving as a "decent line in the sand for directional bias." For deeper pullbacks, he views the $61,600 level as significant support.
Also Read: Bitcoin Up 8% In September: What Traders And Analysts Expect For 'Best-Performing' Q4
Why It Matters: While optimistic, DonAlt cautioned against overly aggressive trading at current levels.
Ultimately, DonAlt believes the market is poised for a move higher but emphasized the importance of risk management. "I'm betting on up but it's going to look so obvious that this was bearish if it breaks down and the opposite is true if it breaks up," he concluded.
Price Action: In the past 24 hours, BTC is trading 3.2% down to $63,600.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
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