The crypto markets could be setting up for a sizable breakout in price, according to recent analysis from DataDash on YouTube.
Crypto headed for a move
On March 29, DataDash YouTube channel host Nicholas Merten jumped online to share his thoughts on upcoming crypto price action. The analyst called crypto’s current state “the twilight zone,” as price volatility has been down and the market is “narrowing in on some major indicators,” he said.
Merten mentioned that he thinks the market will see a sizeable price move for bitcoin, as well as other assets such as ETH and XRP. He noted the total crypto market cap saw a 2019 high in February, with current levels around the same high.
Pointing toward a separate chart, the trading analyst also noted that BTC dominance could drop, leading to possible continued altcoin price action.
Bitcoin’s chart, according to DataDash
Going to bitcoin’s main price chart, Merten continued, analyzing crypto’s leading asset. The McGinely Dynamic has held as support for BTC since February, with price making contact multiple times with the indicator.
Referring to price levels, a close above the $4,200 level for bitcoin would get Merten excited, he said. He also pointed toward the 200-day moving average (MA) above that, with a bit of distance in price between the $4,200 level, and the MA.
Crypto Insider has mentioned a similar (but slightly larger) range several times in analysis, as bitcoin has tested the $4,000 to $4,400 range numerous times since the December price bottom, failing to close convincingly above.
Merten said he thinks price may not make a move up to the 200-day MA quite yet, and could have a “fakeout” above $4,200, but end up closing back below again.
The trader has a trend line of support drawn around $3,600, which he thinks price will retest coming up. “I think we’re going to come back to this line of support here at around $3,600 over the next week,” he said.
The influencer gave a bearish scenario as well, indicating that if BTC does not close above $4,200, he will “start to turn quite bearish in the short term,” stating price could revisit the mentioned $3,600 support, and possibly break down through it if it does not hold.
Merten indicated if price breaks through the mentioned $3,600 support, it could form a double bottom with the previous December bottom. “I think that’s the lowest you’ll see bitcoin go, in my opinion,” he said.
The DataDash host thinks this bearish scenario of a $3,600 retest is likely, due to bitcoin’s low volume. Pointing back in time, he referenced previous uptrends which saw increasing volume over multiple months.
However, the analyst said if bitcoin can close and hold “for a day or two” above the mentioned $4,200 range, he would be optimistic. “I’ll get very very excited,” he said.
The technician also analyzed ether, stating his opinion that the asset could post higher lows moving forward over the coming months.
Taking a peek at XRP, Merten pointed out a narrowing of price in a range. He said if price closes above $0.335, he will be bullish, and if price travels below $0.29, he will be bearish on altcoins.
*This article is based on opinions, speculations and interpretations from the author and others, and is not in any way financial advice. Writing about price levels, charts, etc., is purely speculation, subject to speculatory bias. Nothing written is any kind of advice whatsoever. Proceed only at your own risk.