Bitcoin’s Recent Washout Led To ‘Positive Chart Structure,’ Technical Analysts Say
By Benzinga
Crypto analysts DonAlt and CryptoCred offered mixed signals on Bitcoin’s (CRYPTO: BTC) outlook in their latest market discussion, highlighting the importance of multiple timeframe analysis.
What Happened: In the latest “Technical Roundup” stream, DonAlt noted that Bitcoin’s recent washout has created a more positive chart structure. “If you just look at it, this is a bullish chart,” he stated, adding that the monthly candle’s recovery from lows strengthens the bullish case.
However, the weekly timeframe presents a more bearish picture. DonAlt pointed out that Bitcoin is currently testing significant resistance around $64,000, making it an attractive area for potential shorts. “Looking at this chart, I think you kind of have to be bearish,” he remarked.
DonAlt’s current strategy involves holding his long position from lower levels, with a stop loss of around $60,000. He explained his rationale: “I’m willing to risk it… because I think we’re either at the end of the cycle or we’re gonna make a significant new all-time high on Bitcoin.”
Why It Matters: The discussion also touched on the broader crypto market, with DonAlt noting the end of the recent “meme cycle” and its potential implications for the overall market structure.
As Bitcoin hovers near critical resistance levels, traders are advised to remain vigilant and consider multiple timeframes in their analysis. The coming weeks could prove decisive in determining whether Bitcoin can break out to new highs or if the current cycle is nearing its end.
The analysts emphasized the importance of considering multiple timeframes when making trading decisions. CryptoCred highlighted the challenges of breakout trading, suggesting that traders often struggle with conflicting signals across different timeframes.
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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