Bitcoin (BTC) Analyst DonAlt Sees Potential for a Significant Breakout, Urges Caution

As Bitcoin BTC/USD prices dropped below $64,000 in Monday trading, veteran crypto analyst DonAlt sees potential for a significant breakout but urges traders

input: Bitcoin BTC/USD prices rose above $63,000 on Monday morning after a recent consolidation in the $58,000-$65,000 range. As the month nears its close, key levels are emerging on both sides.

What Happened: A recent analysis by veteran crypto analyst DonAlt highlighted the significance of Monday’s monthly close, which could mark the 18th time that Bitcoin prices have closed either above $65,000 or above $58,000.

DonAlt sees the $64,000-$65,000 area as a crucial resistance level to watch for potential breakout attempts.

"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. But if we fail to break higher, then I think that signals another lengthier bear market."

On shorter timeframes, DonAlt pointed out a recent daily engulfing candle, which could provide short-term support at its low around $62,600, serving as a "decent line in the sand for directional bias.” For deeper pullbacks, he sees the $61,600 level as significant support.

See More: How To Buy Bitcoin (BTC)

DonAlt remained optimistic about the potential for a breakout but cautioned against overly aggressive trading at current levels.

"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. I'm surprised that people are so directional at these levels, I don't get it."

output: Benzinga Pro subscribers can follow DonAlt's livestream analysis hereDonAlt concluded his analysis by expressing his belief that the market is poised for a move higher but emphasized the importance of risk management, especially in the event of a failure to break out.

Price Action: In the past 24 hours, BTC is trading 3.2% down to $63,600.