A seasoned trader remains cautious about turning bullish on Bitcoin (BTC), citing concerns about a potential market crash akin to November 2018. During that period, BTC plummeted below $6,000 after trading within a tight range for over six months, eventually bottoming near $3,000 despite initial dip-buying enthusiasm.

DonAlt, a trader known by his pseudonym, shared with his 568,000 followers on X that he believes the current optimism surrounding BTC is premature, especially following the breach of the psychological $60,000 support level. Reflecting on past experiences, he cautioned against hasty bullish sentiment:
“I recall vividly when $6,000 gave way and buyers rushed in at $5,500. That didn’t end well, which is why I’m taking a more cautious approach now, waiting to see where the market stabilizes… Anyway, a weekly close above $60,000 would be exceedingly bullish. A close at $52,000 would signal potential bounce plays for next week. Anything in between is noise and unworthy of attention.”

DonAlt highlighted BTC’s significant breakdown below $60,000 as indicative of a major shift in market dynamics, suggesting that Bitcoin might require substantial time and confirmation before any meaningful recovery:
“I don’t believe it’s wise to be overly aggressive at this stage. If we reclaim the previous trading range, there will be ample opportunity to adopt a more bullish stance. Right now, the risk/reward ratio doesn’t justify it.”

As of the latest update, Bitcoin is trading at $57,743, reflecting a 2.35% increase for the day.

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[Image: DALLE3]

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