We've been anticipating a real Bitcoin breakout above $65,000 for a while. After three attempts in as many months, it looks like we're finally seeing some action. As we noted when looking at simulation results (the second scenario in this post), a sustained breakout would be significant. It would greatly increase the likelihood of positive returns in the coming months. Let's examine the price action, what's driving it, and how likely it is to maintain this momentum. The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions. We spend hours every day gathering data, creating metrics and bringing them to life with data visualizations that allow you to quickly get to the heart of things. We then distill all that knowledge in each issue of the newsletter with less words and more charts so that you get insights, direct to the point, in five minutes or less. Join more than 25,000 investors here: Done? Thanks! That’s great! Now let’s dive in. Bitcoin Breakout: How Strong Is It?The TakeawayBitcoin's recent breakout above $65,000 is gaining momentum, driven significantly by strong Bitcoin ETF inflows. While the price action is bullish, indicators like the RSI are approaching overbought territory. Our ETF crowding model suggests the move isn't overly extended yet, but caution is warranted if both price and fund flows continue to surge. Maintaining levels above the 200-day moving average could set the stage for a potential bull market in the coming months. A Breakout Venturing Into Overbought Territory... Continue reading this post for free in the Substack app
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Monday, October 21, 2024
Bitcoin Breakout: How Strong Is It?
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