DataDash analyst Nicholas Merten is looking for three key components that will drive Bitcoin’s rally to new all-time highs.
In a copy To update Bitcoin recently told Merten that Bitcoin was trading near an ascending support and resistance level around $ 43,500, which he believes is a key level before a new ATH is set.
“The first step I would wish for was to retest the previous resistance line several times to consolidate it as support …
Trends are always about testing a certain area of support over and over again because it’s a test of who is in control. Cow or bear? Buyer or Seller? Are buyers buying more than just selling pressure? Or, conversely, is the pressure to sell greater than with potential new buyers? “
Next, he wants Bitcoin to make higher lows and higher highs after consolidating new support levels.
“The second step is to make higher lows and higher highs. This can happen at the same time as a support range test, but it usually happens later as the price keeps testing this line. “
Ultimately, Merten is looking for a breakout above Bitcoin’s previous all-time high of $ 64,000.
“The third step, which I know seems pretty obvious, is not just to definitely break the long-term relative high, but to prepare for and continue the second trend is to establish higher lows and higher highs the previous ATH.
And the third step is so important because it’s not an easy challenge. Breaking all-time highs can often take a while. “
He recalled Bitcoin trading below the ATH of $ 20,000, which it hit in 2017, in November 2020, noting that BTC experienced several setbacks in about a month before it erupted.
Speaking of the future: Nicholas Merten predicts that Bitcoin will climb to a new all-time high by the end of this year or early 2022.
“In general, it is likely that BTC price will hit a possible breakout above the previous ATH in December 2021 or January 2022. I think that’s a reasonable time frame. “
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According to Dailyhodl