A popular cryptotrader looked at a scenario in which investors would reopen their positions in bitcoin (BTC).
To determine the right moment, DonAlt closely monitors the 200-week moving average, the indicator that marked the bottom of BTC during previous bear markets.
In his opinion, a rally above the 200-week moving average would awaken BTC’s bullish momentum.
Currently, the 200-week moving average is hovering around $22,500, so a close above that level would lead to a return of capital.
DonAlt added that if bitcoin manages to rise to that level, he sees the $28,000 mark as an initial target. In his opinion, the target price could be much higher depending on the market structure of the rally.
If we get rid of what we went through, I probably wouldn’t want to sell at $28,000. But it depends on how we get there. If we make it with a much higher compression to $28,000, I’ll be the first one out of the market. That’s not what I want to see…because then I think we’ll get back in quickly….
But if we round here and come up to $23,000 to $24,000 and then squeeze, creating a base, I don’t think there’s really a good reason to sell at $28,000. So I’m going to hang on to my coins and wait.