According to DataDash, there are signs that Bitcoin may be entering a more optimistic phase and could potentially go parabolic. He points out that Bitcoin has moved above its 21-day moving average price and is now testing the 100-day moving average, which he sees as a positive indicator.
-
DataDash notes that if ETF inflows remain strong and selling pressure from sources like Mt. Gox doesn't become too extreme, Bitcoin could accelerate higher, similar to what happened in August 2023.
-
He believes the current setup offers a more favorable risk-reward scenario for entering positions compared to earlier in the year when he was taking profits.
-
However, DataDash cautions against trying to catch the absolute bottom or chasing coins that have already seen significant gains. He advises waiting for momentum to build and looking for coins that show resilience during market downturns. He highlights meme coins as an area showing strength recently.
Overall, while DataDash sees encouraging signs for Bitcoin and the broader crypto market, he emphasizes the importance of being patient, looking for clear trends, and focusing on market leaders rather than trying to pick bottoms or chase parabolic moves that have already occurred. He suggests this could be the start of a broader trend formation if higher lows and highs continue to develop.
