Bitcoin Monthly Close Approaches – Price Must Close Above Key Resistance for Continued Rally
A trader who called the Bitcoin (BTC) bottom at $16,000 updated his outlook on the flagship cryptocurrency.
The pseudonymous trader, known as DonAlt, has supposedly re-entered the market recently after buying Bitcoin at $16,000 and selling at $25,000. He claims to have re-entered at $23,000.
In the latest edition of his Weekly Roundup, the analyst says a crucial moment for the markets is coming as BTC’s monthly close approaches.
Monthly resistance and bullish rally
According to DonAlt, Bitcoin is on the verge of closing above monthly resistance at $23,291, which would signal BTC’s 2023 rally is not over yet.
He believes that the market may see a bit of chop next month if Bitcoin closes above that monthly resistance. Still, he expects BTC to move up again in general.
Support level and cautious trading
DonAlt entered the market because of intense fear of missing out. His bullish view on BTC remained intact as it approached short-term bullish invalidation at $23,000. However, he warns traders to be cautious if Bitcoin dips below $23,000 and approaches a crucial area of short-term support at around $22,500. DonAlt says it makes sense to be careful if this happens because it could mean that BTC is running into an area where it’s not making higher lows anymore and coming back into old ranges below $22,500.
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How fear of missing out or FOMO can affect traders
Fear of missing out (FOMO) is a psychological phenomenon that describes the feeling of anxiety or regret that arises when someone feels that they are missing out on an opportunity. In the context of trading, FOMO can lead traders to make irrational or impulsive decisions, such as buying an asset at a high price because they fear that they will miss out on potential profits.
While FOMO can be a powerful motivator that drives traders to take action, it can also have negative effects. For example, traders who buy an asset during a FOMO-driven rally may buy at a high price and then watch their investment’s value decline rapidly as the market corrects. This can lead to significant losses and can also cause emotional distress for traders who feel they missed out on an opportunity or made a mistake.
Additionally, FOMO can lead to a cycle of buying high and selling low. Traders panic and sell off their assets when prices decline, only to buy back in at a higher price when the market starts to recover.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
