The cryptocurrency market has been on a tear over the last month as Bitcoin price climbed 73% from a low of $29,200 on July 20 to a high of $50,478 on Aug. 26, a move that has warranted caution from Dan McDermitt, cryptocurrency market analyst and co-founder of TheChartGuys.
According to McDermitt, Bitcoin’s relentless march over the past month was done “with a lack of weekly consolidation,” which was an impressive progression that frustrated bears as “every week is a higher low.”
McDermitt is “expecting an equilibrium pattern on the monthly time frame, which is a pattern of higher lows and lower highs in a tightening range.”
“I’m anticipating that were are going to be looking for a lower high compared to the all-time high, initially… I’m just watching for some short-term patterns to shift to lead to some weekly consolidation, which would be a healthy bigger picture just to cool things off a bit.”
When it comes to reaching a new all-time high, McDermitt feels that the market will need a catalyst that leads to an increase in volume, such as the passage of a BTC ETF, because a run to $65,000 is going to be done “on the back of very notable volume.”
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