A cryptocurrency analyst who accurately predicted the lowest point for Bitcoin in 2022 believes that the digital asset is on the verge of a highly favorable outcome, despite a predominantly bearish price trend last month.

In a recent strategy session, an anonymous analyst known as DonAlt, who has 59,200 subscribers on YouTube, asserts that Bitcoin is showing signs of strength after experiencing a drop to $60,000 earlier this month, only to quickly recover and reclaim that key level within a few days.

According to DonAlt, this false downward movement could serve as a catalyst for a significant upward surge in BTC’s price.

“That’s an excellent setup. I love those. Almost every time I see them, where the daily timeframe indicates bearishness but the weekly and monthly timeframes are bullish, a reversal usually leads to substantial profits.”

While DonAlt is optimistic about Bitcoin, he does not anticipate the cryptocurrency to reach new all-time highs just yet. The prominent trader points out that Bitcoin has already rallied by more than 170% from October to March, and he believes that it needs more time to consolidate this significant increase before embarking on a new upward trajectory.

“I mentioned this a couple of weeks ago: the longer we experience a sideways movement, the better it is for the bulls because we are essentially digesting the previous surge. That was an incredibly forceful move. Typically, such moves require a market-wide correction, but it can also be digested by sustaining a sideways movement for a sufficient period of time. A false breakdown followed by sideways movement would be the most desirable outcome, in my opinion. As long as we reclaim the $62,500 level and do not fall below $61,000 again, things are looking really, really positive.”

As of the time of writing, Bitcoin is currently trading at $64,285.

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Disclaimer: The opinions expressed in The Daily Hodl do not constitute investment advice. Investors should conduct their own research before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please be aware that your transfers and trades are at your own risk, and any losses incurred will be your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl engages in affiliate marketing.

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