Your script currently only prompts the user once to continue, yet if 'Y' is chosen a blank prompt will appear again and it may not be obvious to the user that they need to enter something.
Also I am a big believer in not replicating code if possible, so you could optionally do something like:
Code:
#!/bin/bash
clear
COUNTER=0
while true ; do
read -n 1 -p " Continue ... [y|n]" -t 60 ANSWER
ANSWER=${ANSWER:-Y}
case ${ANSWER^} in
Y )
xdotool mousemove 1200 10
sleep 3
xdotool click 3
xdotool mousemove 100 100
;;
N )
exit 255
;;
* )
exit 1
;;
esac
(( COUNTER++ ))
echo $COUNTER
done