Popular crypto analyst Nicholas Merten of DataDash is looking for three key components to fuel Bitcoin’s bull run towards new all-time highs.
In a recent Bitcoin update, Merten tells his 470,000 YouTube subscribers that Bitcoin (BTC) has been trading near a key level of ascending support and resistance around $43,500 that he wants to see the top crypto asset hold before establishing new highs.
[adinserter block="1"]“The first thing we wanna see here is multiple retests of this previous line of resistance in order to solidify as support…
It always tends to be that we test a certain range of support multiple times. And the reason for this is because it’s a test between who’s in charge. Is it the bulls or the bears? Is it the buyers in this case? Are they buying more than the sell-side? Or vice versa, is the sell-side pressure outweighing any potential new buyers coming in?”
As for the second step, he wants to see Bitcoin begin forming higher lows and higher highs after it solidifies new support levels.
“Step number two is setting in higher lows and higher highs. Now, this can happen simultaneously with testing the support range, but it’s usually going to happen afterward because we’re gonna be testing this line multiple times.”
Lastly, Merten is looking for a breakout past Bitcoin’s previous all-time high of $64,000 to see further continuation.
“The third step, which I know might seem kind of obvious, is not only inevitably breaking past the broader-term relative highs, but eventually setting up the stage and continuing trend number two of setting those higher lows and higher highs where we eventually break above the previous all-time highs.
And the reason I’m talking about this third step as a quite significant one is because it’s not an easy challenge. Breaking through all-time highs can generally take… a pretty long period of time.”
He flashes back to November 2020 when Bitcoin was trading just under its previous 2017 all-time high of $20,000, highlighting that BTC went through multiple pullbacks for about a month before finally breaking out.
As for the future, Merten is predicting the end of this year or the beginning of 2022 for BTC to climb towards new all-time highs.
“Generally speaking, we’re looking for a potential breakout above those previous all-time highs in December of 2021, or January of 2022. I think that’s a reasonable time frame.”
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