The popular analyst, DonAlt, who correctly predicted Bitcoin’s rally this month pointed out that the top cryptocurrency still has more chances of further price appreciation, even though it has risen by 38% since the beginning of the year.
The analyst under the pseudonym, DonAlt, told his 456,500 Twitter followers that towards the end of January BTC may see an influx of fresh capital from high time frame (HTF) investors.
“The best part of this rally is that HTFs are still in bear market thinking. Once this monthly closes, then it will turn bullish. So, technically, the HTF guys should start to “arrive” in two weeks. The real move hasn’t come yet.”
According to the popular trader, a monthly close above $20,000 will be very positive for Bitcoin. If BTC ends the month on a bullish note, the first resistances for DonAlt are recorded around first at $35,000 and then at $58,800.
According to DonAlt, Bitcoin will continue to rise in price until the “bears” stop short positions.
“My view of this rally is that it is fueled by the ‘bears’ delaying shorting. According to this theory of mine, we are not really allowed to have a pullback until we get close to the top. So, we will have an uptrend until the bears buy and then we will have – only briefly – a pullback.”
The analyst also points out that Bitcoin’s current rally above $20,000 is similar to the one it made when it reached $69,000: “The top high and the bottom, seem to be the same pattern.”