Dan Gambardello has released his latest article in which he breaks down the current dynamics of Bitcoin’s market. video Title “Bitcoin Must Do This Now,” He addressed his 368,000 YouTube followers regarding the crucial resistance levels Bitcoin currently tests. Gambardello stressed the importance of this level for short-term and long-term market movements.
Bitcoin: Why it Must Go Bullish Now
Gambardello starts his analysis with a focus on the short-term holders cost basis. This is currently $63,600. This metric was highlighted as an important momentum indicator. Its role in determining whether the current market is bearish or positive, was emphasized. “Bitcoin is just $2,000 away from the short-term holder cost basis now at $63,600.” Gambardello says that this is an important momentum indicator for investors to monitor.
Gambardello also illustrates various resistance areas that Bitcoin has to overcome in order to signify a market recovery. At the time of the analysis, he points out that Bitcoin was just barely above the moving average for the past 20 days on the daily graph. The close proximity to the closing time of the daily candle made the situation very uncertain. Moving averages of 50 and 200 days were discussed as important barriers to overcome to confirm the a bullish trend.
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Fibonacci Retracement Levels are another important part of his technical analysis. He explains that Bitcoin may encounter an area of lower resistance, leading to either price consolidation or a correction downward if the levels are not exceeded.
Gambardello ventures also into macroeconomic territory. He suggests that the predominance of recession-related fears Could indicate broader economic changes that could impact the crypto market. “The algorithms on X are bombarding me with recession posts, recession data, recession charts. There’s a probable increase because there are actually a lot of indicators that the market is going to crash,” He explained.
The crypto analyst also places a lot of emphasis on the moving average 20-week level, which he considers a significant historical marker for identifying bullish and bearish markets. He points out that the failure to maintain levels above this average often precedes bearish trend, while support above or at this level could signal bullish conditions. “Failing to get above the 20-week moving average is what Bitcoin does when it’s entering bear markets,” He observes.
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In terms of momentum, the analyst referred to Moving Average Convergence Divergence and Relative Strength Index indicators. He mentions that both tools suggest Bitcoin’s potential for upward movement is currently well-positioned, given recent consolidation patterns and cooling phases.
Bitcoin is expected to continue its upward trend. “Bitcoin really took off last cycle when the RSI was around 54 […] if you go back two cycles, Bitcoin was consistently around 53, 50 close to 54 before taking off each time […] consolidation in the RSI, then boom. So we’re from a momentum perspective right where it needs to be. But the move that we need is up now,” The crypto analyst warns.
One warning sign is a persistent drop below the average moving 20-weeks. “We need to see Bitcoin above that 20 week moving average. […] If we see resistance […] we have to anticipate that we could go in the lower $50,000s very fast. It could happen very fast,” Gambardello identifies this as a necessary condition to begin a bullish phase.
Gambardello, from a bullish standpoint, is looking for a break above $63,700. “We’re looking for bullish confirmations to break this entire range and really currently it’s like $63,000 or up to around 63,700 – that’s the range, it’s not even a big range for Bitcoin to make the move but that’s what we’re watching,” He makes a comment.
Gambardello says on X that the overall question is $50,000 or $75,000 “A break above could trigger a mini run towards $70k. Failure could mean new lows around $50k.”
BTC was trading at $ during the time of this press release.
Featured image was created using DALL.E chart by TradingView.com
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Source: www.newsbtc.com