Esteemed cryptocurrency trader DonAlt is evaluating the recent price action of Bitcoin (BTC), revealing his plans to re-enter the markets after selling at $30,000. DonAlt has over 50,200 YouTube subscribers and has frequently discussed in depth technical analysis of the leading digital asset.

In the latest session, DonAlt suggests the asset may be displaying similar market mechanics to 63 days ago when Bitcoin saw a decline to $21,000 which was quickly reclaimed by buyers. On March 9th of this year, Bitcoin had been in monstrous appreciation until a downward spiral caused many to fear fractal predictions of survival. DonAlt is cautiously optimistic as Bitcoin retest's $27,200 support and may be willing to re-enter the markets if buyers provide "evidence of strength".

At the time of writing, Bitcoin has pulled back from the tested $27,200 resistance and is currently trading at $27,202. Investors should remember that downside is still possible if Bitcoin fails to cross the $27,200 threshold. In any event, the asset is showing signs of volatility after several months of unprecedented growth.

The views expressed by DonAlt in this session are representative of a majority of the cryptocurrency trading community in that support levels should be respected, no matter the expectations of some traders. Many rookie investors had entered the crypto markets hoping for short-term gains in the wake of Bitcoin's meteoric rally which started in November 2020.

The lesson traders should take away from DonAlt's latest video is the importance of setting manageable risk parameters. Not only can they protect an investor's hard earned possessions, they can also be beneficial to the overall health of the markets by reducing unpredictable volatility. All in all, DonAlt's strategy session is an ordeal example of how traders should be approaching the markets with caution. Despite the success of buying and selling in March of this year, the potential risk is still greater than the reward and DonAlt is being prudent by observing the decisive indicator, $27,200.



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