The cryptocurrency market has been on an upswing over the past month. Bitcoin prices have risen 73% from $29,200 on Jul 20 to $50,478 Aug 26, which has prompted Dan McDermitt (co-founder of TheChartGuys) to be cautious.
McDermitt claims that Bitcoin’s unrelenting march over the last month was due to ‘a lack of weekly consolidating’, which was an impressive progress that frustrated bears because ‘everyweek is a lower low.’
McDermitt says he expects an equilibrium pattern for the monthly timeframe, which is a pattern with higher lows than highs in tightening ranges.
McDermitt said:
“I anticipate that we will be looking for a lower high than the all-time highest, initially.” I am just looking for patterns that will shift in the short-term to allow for some weekly consolidation. This would help to cool things down a little.
McDermitt believes that to reach a new all time high, the market needs a catalyst, such as the passing of a BTC-ETF, because a run up to $65,000 will be possible ‘on the backs of very significant volume.
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