Analyst Dan Gambardello suggests that Bitcoin’s nearing trendline breakout may significantly elevate altcoin prices based on historical correlations. He identifies key resistance levels and critical price targets for Bitcoin, while cautioning on immediate market resistance. Furthermore, he underscores the interrelationship between altcoin performance and global liquidity trends as a determinant for potential price movements in the upcoming months.
Analyst Dan Gambardello has identified that Bitcoin’s price is nearing a crucial trendline breakout which could significantly boost the altcoin market. His analysis highlights the importance of the RSI momentum oscillator breaking a multi-month trendline, suggesting that historical trends show substantial price increases following such breakouts.
Bitcoin is currently testing the RSI trendline on its weekly chart. This technical development may prove pivotal for the cryptocurrency’s future movements. Gambardello notes that previous upward breaks of these RSI trendlines since 2018 have consistently led to impressive price rallies for Bitcoin.
In Gambardello’s observations, two key aspects should be monitored in the upcoming days. With six days remaining in the current weekly candle, a strong close is critical for confirming ongoing momentum. Additionally, Bitcoin must exceed the yellow lower high trendline on the RSI and close above the moving average on the RSI to validate the bullish trend.
Gambardello has highlighted $92,000 as a significant price point for Bitcoin. A sustained close above this level would counter bearish expectations and suggest a bullish trend, coinciding with the key 20-week moving average that historically indicates market shifts. Comparatively, he notes that during previous bear markets, Bitcoin struggled to surpass the 20-week moving average, suggesting present conditions with differing monetary policies may yield more favourable outcomes.
Despite the positive indications on the weekly chart, Gambardello advises caution in the short term due to immediate resistance levels. The daily chart reveals Bitcoin’s struggle with a downtrend line and the 50-day moving average, creating a resistance zone that must be breached for a larger breakout to occur.
Gambardello outlines potential scenarios for Bitcoin in the coming days if resistance is encountered. A rejection could occur post-testing $87,000, prompting a potential drop to the 20-day moving average priced at $82,000-$83,000. If this fails, support could be found at the $76,000 to $78,000 level linked with a historic neckline pattern.
To initiate bullish momentum, Bitcoin needs to close a daily candle above the 200-day moving average at $87,000. Achieving this would establish a pathway toward the $92,000 mark, vital for validating further bullish signs on the weekly RSI.
Gambardello also examines the correlation between altcoin performance and global M2 money supply trends. His analysis emphasizes a historical linkage between increases in global liquidity and crypto market trends. Previous data indicate altcoins typically breach their 20-day moving averages soon after M2 money supply upticks.
Recent patterns indicate that altcoin charts are testing their 20-day moving averages approximately 23 days following the latest increase in M2 supply. This correlation positions the altcoin market for an imminent breakout, depending on the successful surpassing of this breakout level. However, failure to do so may lead to a rejection and further decline.
