- Bitcoin soars above $45,000 on charts
- Dan the Chartman advocates strategic buying during narrow range breakouts
For the first time since mid-January, Bitcoin (BTC) has finally broken through the $45,000 mark and is trading at $46,209 at the time of writing. This recovery has sparked optimism among investors. In fact, some traders are zeroing in on a potential push towards $50,000.
Is Bitcoin bullish?
Recent live streamDan McDermitt, founder and CEO of ChartGuys, spoke with Scott Melker about what this bull market means. He shared his optimistic outlook for bullish investors in the market. Mr. McDermitt drew attention to this fact. We noticed that the price had been moving sideways on the daily chart for about two weeks.
This period of stability was said to be the narrowest range in recent months and signaled a breakout was imminent. The trader said:
“Whether you’re bullish or bearish, we know a break in this range is coming, and we’ll see an increase in volume and volatility with it.”
It’s never too late to buy Bitcoin
McDermitt explained that while the possibility of a 10% follow-through on a bullish break may not be as prevalent as it once was, strategies that invest in moments like these are still important. He commented:
“If you’re going to buy a bull break, it has to be a very tight range break bull like this one.”
He further elaborated that recent price movements have led to a return to the “golden pocket”, a level that significantly increases the likelihood of sustaining the rally.
McDermitt argued that even if Bitcoin is unable to break above recent highs immediately, the market is likely to seek a new weekly low compared to the recent low of $38,500. . This will provide a “good cushion” for bullish investors.
Where is the BTC market headed?
The question for investors now, McDermitt said, is whether the market’s bullish volume will continue to increase or remain stable into February. He said the next week to 18 months will be critical in determining the likelihood of each scenario.
The Chart Guy highlighted the importance of the 12-day exponential moving average (EMA) as a key market indicator. To him, as long as the bulls continue to hold these levels test after test, the market will remain stable.
Mr. McDermitt also recognized the importance of monitoring trading volumes to assess market probabilities. Market volume trends also received additional attention, particularly in relation to Coinbase and recent exchange-traded fund (ETF) activity. Trading volumes have increased recently, but have generally been on the decline in recent weeks.