A closely tracked crypto strategist who built his following with timely Bitcoin (BTC) calls says $22,000 is a make or break level for the king crypto.
Pseudonymous analyst DonAlt tells his 414,000 Twitter followers that he’s keeping an eye on how Bitcoin reacts as it slowly grinds its way up to $22,000.
“Watching this is as exciting as watching paint dry. $22,000 is still where dreams are made. We either fail spectacularly there or bask in glory. There are honestly good bull and bear arguments to be made here. I still enjoy being bullishly positioned more though.”
At time of writing, Bitcoin is changing hands for $20,737, down over 3% in the last 24 hours.
Although BTC has failed to surge above $22,000 twice over a span of two weeks, DonAlt highlights that the leading digital asset is starting to flash a bullish market structure in the low timeframes.
“Broke out of the low timeframe range. Generally, [I] don’t think levels are too important here. Market structure is much more so. This is the first time in quite a while that we’ve actually set a higher low and a higher high. [Above] $22,000 and I could see us fill the massive Three Arrows Capital gap.”
DonAlt is referring to the massive sell-off from $28,000 ignited by the collapse of crypto hedge fund Three Arrows Capital. According to the crypto strategist, a move above $22,000 could propel BTC to its next resistance, which is around $30,000.
“Haters hate. Support supports. Still A LOT of work to do but I still very much like this chart. Not calling for the end of the bear, just for a sizeable mean reversion.”
In trading, mean reversion is the theory that prices will revert to their averages after an extreme move. In Bitcoin’s case, DonAlt posits that BTC is due for a mean reversion after it slid from about $30,000 all the way down to $17,600 in a matter of days.
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Featured Image: Shutterstock/Sergey Nivens/Chuenmanuse
