Bitcoin Poised for Breakout, But Analyst Warns of $40K Drop If Trend Reverses
A well-known cryptocurrency expert believes Bitcoin (BTC) might be preparing for a significant price surge as it remains around the $96,000 mark.
The analyst, known as DonAlt, observed Bitcoin’s improving market structure on the daily chart, suggesting a potential breakout could be on the horizon.
He mentioned, “The market is tightening, and with each passing day, a breakout seems increasingly likely, especially with the current news flow.”
DonAlt went on to note the unusual nature of recent price action, with candle bodies shrinking before growing larger, signaling that a major move could be imminent.
READ MORE: Taurus Brings Tokenization to Solana for Banks
However, he cautioned that if Bitcoin’s current upward momentum fails, it could see a retracement back to the $40,000 or even $30,000 levels.
“If the trend reverses, a drop to around $40,000 is possible, but I don’t foresee it falling below that. A pullback to the low $30,000 range would still represent a 72% drop from the peak,” he explained.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
