Nicholas Merten, known as DataDash, discusses the critical moment Bitcoin faces in its price action as of July 1, 2024. He emphasizes that this moment could determine whether Bitcoin will start trending higher after a four-month consolidation or if more price decline is on the horizon.
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DataDash points out the importance of moving averages in Bitcoin's price action. He explains that the 100-day and 200-day moving averages are acting as psychological levels that many traders are watching. The recent price action has brought Bitcoin close to these levels, which has attracted some buyers. However, Merten expresses skepticism about whether there's enough buying pressure to push through these resistance levels.
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DataDash highlights the broader context of the cryptocurrency market, noting that many altcoins are also struggling. He uses examples like Render, Stacks, and Fetch.ai to illustrate how even strong performers in the AI and DeFi spaces are facing significant price corrections.
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DataDash advises against rushing to buy these dips, emphasizing the importance of waiting for clear signs of strength and momentum before entering positions.
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Regarding the overall market sentiment, DataDash suggests that the weakness in crypto might be indicative of a broader risk-off sentiment growing in all asset markets. He points to potential signs of a top forming in equities, particularly in tech stocks and AI-related companies.
In conclusion, while not completely ruling out the possibility of a bullish breakout, Merten advises caution. He recommends waiting for clear confirmations, such as Bitcoin closing above $64,000 to $65,000, before taking on significant risk in the crypto market.
