A prominent cryptocurrency analyst, DonAlt, has warned of a potential abrupt end to the current Bitcoin
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0.000039 rally should the cryptocurrency fail to maintain certain critical price levels. Drawing parallels to the 2021 $60,000 Bitcoin crash, DonAlt stressed the significant risks associated with the cryptocurrency falling below $104,000 and $100,000. Investors are advised to act cautiously by reflecting on previous market cycles.
Critical Levels and Scenarios for Bitcoin
According to DonAlt, Bitcoin’s current price of approximately $107,590 is closely linked to two crucial support levels in the short term: $104,000 and $100,000. A breach of these thresholds could trigger a sharp market correction. The analyst warned, “Falling below $104,000 is an early warning, while slipping under $100,000 signals alarm bells for investors.”
There are mounting concerns about a potential scenario reminiscent of the 70% collapse that followed the 2021 crash below $60,000. DonAlt issued an urgent call for action, noting that unless Bitcoin holds these levels, all market projections might become null. Large investors, in particular, are monitoring these levels, which could lead to increased selling pressure.
Parallels and Risks with Previous Cycles
There is a striking similarity between Bitcoin’s current market movements and the 2021 boom-and-bust cycle. Back then, failing to convert $60,000 into support initiated a prolonged bear market. To prevent a recurrence, DonAlt argues that investors should carefully monitor daily price movements.
The high volatility in the cryptocurrency market suggests that sudden drops can occur at any time. Experts warn, “If the price drops below $100,000, panic selling could become inevitable.” Meanwhile, although technical indicators still suggest a bullish trend, maintaining foundational support levels is critical.
