A top trader who rode the 2023 crypto breakout warns that Bitcoin (BTC) bulls have about a week to avert a potentially catastrophic scenario.

Pseudonymous analyst DonAlt tells his 532,100 followers on the social media platform X that Bitcoin’s monthly chart is very close to flashing a strong bearish signal.

The trader shares a chart showing that BTC was rejected at the high time frame resistance of $70,000, suggesting that Bitcoin’s multi-month rally from around $20,000 may be coming to an end.

“Monthly needs to close green otherwise that’s a strong sell signal on the most important high time frame we’ve got.

A close below $56,000 would be catastrophic.

 [Seven] days to go, good luck bulls.” 

Zooming in, DonAlt says that Bitcoin bulls must hold BTC’s immediate support at $65,000 to have a shot at ending the current correction. Otherwise, DonAlt warns that BTC is at risk of seeing prices below $60,000.

“Bulls tried but so far haven’t managed to make any significant progress A close below $65,000 might as well be a close below $60,000 in my opinion… Bulls and bears fighting it out at the last line of defense.” 

Looking at the trader’s chart, he appears to suggest that Bitcoin is currently forming a head-and-shoulders formation – a technical pattern that may foreshadow the beginning of a downtrend.

At time of writing, Bitcoin is trading for $64,592.

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