Bitcoin: Here is Which Level Could Signal Bullish Reversal
A trader and analyst is now warning that Bitcoin (BTC) may be poised for a potential downtrend.
In a recent video, DonAlt, cautioned that Bitcoin remains at high risk of falling in value despite its recent surge.
High Risk of Rejection at Current Levels
DonAlt expressed concerns that Bitcoin is in a “danger territory,” where it could face a strong rejection at its current price levels. “I don’t want to bull talk too much while we are in the area where we can get rejected easily,” he stated. The analyst believes BTC is at a critical point, where either a sharp price decline or a brief surge could occur, potentially leading to a downtrend.
“If this doesn’t get rejected here [in the mid-$80,000s], where is it going to? You can obviously hope for a wick towards $90,000, $91,000. I think that would be the only real acceptable bearish setup to take,” DonAlt explained. He added that for those with a bearish outlook, this price level could present an optimal setup for entering a short position, particularly if Bitcoin fails to sustain any upward momentum.
Which Level Could Be Key for Bulls
However, DonAlt noted that if Bitcoin manages to surge past the $90,000 level and maintain momentum, it could signal a stronger bullish trend. He stated that a close above $90,000 would be the “best course of action” for the bulls, as it would likely trigger further upward movement in the market.
“If we start doing this, poke our head back above $90,000 favorably, obviously if the macro situation changes alongside with it, I think the next candle is going to be like this [to around $95,000],” DonAlt explained. He believes that with favorable macroeconomic conditions, Bitcoin could eventually trade at $110,000 to $120,000, marking a significant bullish breakout.
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Bullish Scenario For Bitcoin
DonAlt’s ideal scenario for Bitcoin’s price movement includes a setup where Bitcoin breaks above the $90,000 resistance level, setting the stage for a move toward $110,000 to $120,000. He suggested an entry point near $90,000 with a stop loss at $77,000, emphasizing that this would offer a favorable risk-to-reward ratio for those looking to position for a further upside move.
“The moment we get back above $90,000, there’s a decent setup, stop loss down here [at $77,000], entry somewhere there [around $90,000], and then the target above $110,000 into maybe $120,000-$130,000,” DonAlt said, presenting an optimistic view for Bitcoin if the price manages to regain strength.
Conclusion: Bitcoin’s Future Is at a Critical Juncture
DonAlt’s analysis highlights the critical juncture Bitcoin finds itself at, where a rejection at current levels could send the price lower, while a successful breakout above $90,000 could initiate a new bullish cycle. The trader’s warning about the potential downtrend underscores the importance of monitoring Bitcoin’s price action closely in the coming weeks, especially given the uncertainty surrounding broader market conditions.
As always, DonAlt’s predictions should be taken with caution, as cryptocurrency markets can be highly volatile and unpredictable. However, his insights provide a clear framework for both bearish and bullish scenarios for Bitcoin in the near term.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
