Bitcoin’s market conditions have again taken center stage, with veteran analysts watching for signs of a significant turning point.
Seasoned crypto analyst Dan Gambardello believes Bitcoin may be nearing its final bottom, suggesting. Gambardello called attention to a critical indicator, indicating the current dip could mark the end of Bitcoin’s downward trend.
This analysis has gained attention as Bitcoin struggles to recover from recent lows. Yet, a notable question remains: Can BTC commence a potential price reversal?
Bitcoin Testing Crucial Support Levels and Moving Averages
Bitcoin is testing a significant support level on the daily chart, which Gambardello identifies as critical for its near-term trajectory. Its ability to maintain a position above the 50-day moving average (MA) is crucial to its short-term performance.
BITCOIN’S One Indicator Signaling LAST Major Dip
Intro 00:00
Higher low support 00:4
This indicator has my attention 2:25
Bullish support 4:20
If Bitcoin capitulates 6:30
The ultimate capitulation 7:30
October still looks good 9:15
Zoom out on BTC! 10:30 pic.twitter.com/aJBTQ2jCl4— Dan Gambardello (@cryptorecruitr) October 2, 2024
Gambardello emphasizes the importance of another key technical pattern—the lower trend line in the falling wedge formation on Bitcoin’s chart. Even if Bitcoin revisits this trend line, the analyst believes it will likely be the last time, thanks to the six-month+ consolidations.
This extended consolidation phase may lay the groundwork for a more significant upward move in the near term.
Adding to the positive sentiment, the analyst points out a bullish crossover of the 20-day moving average above the 50-day moving average. Considering the outcome of the market after crossovers, Bitcoin may be gearing up for a rebound soon.
Bullish Confluences in Sight – Fibonacci and Key Indicators Support
In addition to price patterns and moving averages, other technical indicators hint that Bitcoin may be approaching a bottom. Gambardello specifically highlights the Relative Strength Index (RSI) on the 6-hour chart, which shows oversold conditions.
This oversold reading could signal that Bitcoin’s recent declines are nearing an end. Thus, a price bounce is within reach.
However, chances of dipping into a key Fibonacci support zone, ranging between $58,000 and $55,500, cannot be ruled out. If Bitcoin falls into this range, it could present a buying opportunity for traders expecting a price recovery.
Despite the cautious optimism, Gambardello warns that a final capitulation event could still occur if Bitcoin drops further. Some analysts point to the $50,000 level as a potential area for this final event.
At this point, oversold conditions on shorter-term charts could signal the market’s bottom. If Bitcoin does reach this final capitulation point, it could serve as a springboard for a significant recovery.
The alignment of these technical indicators suggests that a bounce could follow any short-term declines.
Bitcoin Halving to Facilitate Bullish Market in The Long Term
Looking beyond the short-term price fluctuations, Gambardello and other analysts maintain a bullish outlook for Bitcoin in the longer term.
The 2024 Bitcoin halving event is being compared to previous halving cycles, which have historically led to significant price increases. This reduction in supply has often been followed by price increases as demand for the limited supply rises.
Gambardello suggests that Bitcoin’s broader macro trends remain bullish despite market fears. These underlying factors support his belief that Bitcoin could end October on a positive note.
Furthermore, projections based on historical data suggest that Bitcoin could surpass $100,000 by the end of the year. Its potential price points could fall from $80,518 to $106,718 in October and December.
Dan Gambardello’s analysis offers a cautiously optimistic view of Bitcoin’s current market conditions. While short-term price declines and a potential final capitulation event are still possible, key indicators are bullish.
As such, investors may have high hopes as the current downturn may soon birth a strong recovery.
