Bitcoin (CRYPTO: BTC) is staging a massive reversal, prompting widely followed crypto trader DonAlt to predict a squeeze toward $105,000 as he warns shorts are “in deep trouble” after getting trapped above $92,000.
The Bitcoin Setup: A Classic Bear Trap
DonAlt argues that Bitcoin’s recent price action — breaking down below support only to aggressively reclaim the range — is one of the most reliable bullish signals in trading.
Bitcoin looked “dead” when it lost the $92,000 level, enticing traders to open short positions. By pushing back above that breakdown level, bulls have trapped those shorts in losing positions.
“If you are shorting here, you are in deep trouble,” DonAlt said. He notes that failed breakdowns usually lead to violent moves to the opposite side of the range, targeting a retest of $104,000 to $105,000.
The Monthly Resistance Is The Only Worry
While the weekly chart signals a breakout, DonAlt cautioned that the monthly timeframe remains at resistance.
However, he views Bitcoin’s ability to return to these highs as a sign of strength rather than weakness.
The market needs to hold $92,000. As long as price stays above this level, the breakout remains valid.
A close back below $90,000 would signal a failed breakout and likely lead to a flush lower.
Altcoins: The ‘Bleed’ Continues
Despite Bitcoin’s strength, DonAlt remains skeptical of the broader altcoin market, describing it as a capital trap for retail investors.
DonAlt dismissed the narrative that Litecoin (CRYPTO: LTC) will rally because Silver is hitting highs, calling the chart underwhelming. “It’s at support, but it’s been disappointing,” he said.
Monero (CRYPTO: XMR) stands out as the lone bright spot. DonAlt highlighted XMR as one of the few charts breaking out of a multi-year slumber, calling it “one of the more interesting ones” with room to run.
Solana (CRYPTO: SOL) is simply chopping sideways. While not bearish on SOL, DonAlt sees it as a safer hold than most legacy alts but currently less attractive than Bitcoin.
The Hard Truth For Bagholders
DonAlt offered a stark warning to investors holding underwater positions in older altcoins hoping for a rotation.
The opportunity cost is massive. “You miss out on the entire rally because you’re just sticking with laggards,” he said.
The reality is harsh: “99.9% of altcoins eventually go asymptotically to zero against Bitcoin. If you aren’t ready to take losses, you will sit through losing all your money.”
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$BTCBitcoin$96159.00-0.82%Overview$LTCLitecoin$72.28-5.75%$SOLSolana$142.52-2.85%$XMRMonero$711.680.02%Market News and Data brought to you by Benzinga APIs
