A seasoned trader remains cautious about turning bullish on Bitcoin (BTC), citing the risk of a crash reminiscent of November 2018.

Back in November 2018, Bitcoin plunged below $6,000 after months of consolidation, eventually bottoming out near $3,000 despite initial enthusiasm to buy the dip.

The trader, known pseudonymously as DonAlt, shared with his 568,000 followers on X that he believes traders are prematurely optimistic about BTC following its drop from the psychological support level of $60,000.

“I think people are getting bullish too soon,” he remarked. “I remember when $6,000 broke, and everyone rushed to buy at $5,500. It didn’t turn out well, which is why I’m waiting to see where this goes. A weekly close above $60,000 would be extremely bullish, while a close at $52,000 might prompt me to look for bounce plays next week. Anything else is uninteresting noise.”

DonAlt noted that BTC experienced a significant breakdown after failing to sustain $60,000, suggesting that recovery will require time and confirmation.

“I don’t think it’s wise to be overly aggressive now. There will be ample opportunity to go all-in if we reclaim the range, and I’ll join then. At this point, I don’t see a favorable risk/reward ratio.”

Currently, Bitcoin is trading at $57,743, a 2.35% increase on the day.

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Disclaimer: The views expressed at The Daily Hodl are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Your trades are your responsibility, and any losses incurred are solely your liability. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets and is not an investment advisor. Please be aware that The Daily Hodl engages in affiliate marketing.
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