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,” On YouTube, he addressed his 368.000 followers about the resistance levels Bitcoin has been testing. Gambardello stressed the importance of this level for short-term and long-term market movements.
Bitcoin must turn 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, he said. “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 describes the multiple resistance zones Bitcoin has to overcome in order to signify a market recovery. At the time of the analysis, he points out that Bitcoin was just above the moving average for the past 20 days on the daily chart. But the closeness of the daily candle closing made it highly uncertain. It was also mentioned that the 50-day average and the 200-day average were important barriers. bullish trend.
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Fibonacci levels are also a cornerstone in his analysis. He expounds the possibility that Bitcoin will encounter a lower-higher resistance area. This could result in either a consolidation of price or a correction downward if those levels are not exceeded.
Gambardello ventures also into macroeconomic territory. He indicates the predominance of recession-related fears The crypto market could be impacted by broader changes in the economy. “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 clarified.
The analyst pays particular attention to the 20-week average. He describes this level as historically important in determining bull and bear market conditions. He points out that the failure to maintain levels above this average often precedes bearish trend, whereas support at or below this line can herald positive 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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The analyst drew the attention of the audience to two indicators that are used for determining momentum: the Moving Average Convergence Divergence indicator (MACD) and the Relative Strength Index. The analyst mentions both indicators, which suggest Bitcoin has a good chance of moving upwards in the near future, given that recent cooling and consolidation periods have been observed.
Bitcoins must now move up. “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,” 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 declares that this is a necessary condition to begin a bullish phase.
Gambardello’s bullish view is that he awaits a breakout of $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 remarks.
Gambardello on X says that it is a matter of $50,000 to $70,000. “A break above could trigger a mini run towards $70k. Failure could mean new lows around $50k.”
BTC is currently trading for $
Featured image was created using DALL.E chart by TradingView.com
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Source: www.newsbtc.com
