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Bitcoin bulls have reasons to feel optimistic, especially with the $76,000 mark in focus. According to chart analyst Peter Brandt, determining a true breakout requires specific conditions. Currently, diagonal patterns pose challenges. The recent price movements, while thrilling for bulls, have merely grazed boundary lines.
B I T C O I N $BTC
— Peter Brandt (@PeterLBrandt) October 29, 2024
When is a breakout really a breakout?
Bitcoin bulls should be excited – but there are rules to determine breakouts
Diagonal patterns with slanted boundary lines are difficult to trade because the nicking of a boundary line — while exciting to bulls — does NOT… pic.twitter.com/86cQtCzdav
Authentic Bitcoin Breakout Depends on Sunday Confirmation
In order for a breakout to be authentic, Bitcoin must have closed above the $76,000 level on the daily chart. This level is the average true range (ATR) close above the March high. Additionally, confirmation has to be made on a Sunday evening at midnight UTC.
Looking at the weekly chart it can be seen that the latest rally has only brushed past some important chart points. This means that there is still much that needs to be done before the price of Bitcoin can sustain a bull run.
Traders Urged to Stay Calm Amid Bitcoin Hype
This is where the temper of excitement should not lead to excessive fanaticism. The market offers risks and traders should be cautious. Sticking to these technical aspects will help give a better picture whether this rally is strong enough to continue or if it is just noise.
Lastly, the optimism regarding Bitcoin is deep-seated, yet real moves up need to follow the rules of the road. The $76,000 mark will serve as an important indicator to monitor as to the further price trend of Bitcoin. As the market changes, it requires a lot of patience and discipline.