Sideline capital can flow back to Bitcoin (BTC) if this happens, according to top cryptanalysts
A closely tracked crypto trader unveils a scenario where traders waiting on the sidelines will return to Bitcoin (BTC).
In a new strategy session, DonAlt says that he is closely following the 200-week moving average, an indicator that has marked the bottom for BTC during its previous bear markets.
According to DonAlt, a rally above the 200-week moving average will antenna BTC’s bullish momentum.
“The [200-week moving average] is in an area where I think if we come back over [it], it’s pretty clear it’s going to go higher. They actually offer a pretty big trading opportunity … If we start closing back over it, I think you’ll see a bunch of sideline capital move in, so it’s probably going to go up. ”
The 200-week moving average currently swings around $ 22,500.
DonAlt also says that if Bitcoin manages to accumulate, it sees $ 28,000 as its first target. He emphasizes that his target price can be much higher depending on the market structure of the rally.
“If we shake off what we’ve been through, I’ll probably not sell $ 28,000. But it depends on how we get there. If we get it [scam] action, but with just a much much higher squeeze against $ 28,000, I’m going to be the first out the door. That’s not what I want to see … because then I think what’s going to happen is that it’s going to squeeze into it and then slowly soften down again …
But if we round off here and go up to $ 23,000 to $ 24,000 and then squeeze, then build a base, I think there’s no good reason to sell [at] $ 28,000. So I’m going to hold on to my stuff and try harder. “
At the time of writing, Bitcoin is changing hands to $ 20,235, up over 5% on the day.
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