Bitcoin (BTC) is closing in on its all-time high (ATH), bringing excitement among bulls. However, seasoned analyst Peter Brandt advises caution, urging bulls to stay excited yet avoid becoming dogmatic.<\/p>\n
After a lackluster start to October \u2013 a historically bullish<\/a> month for Bitcoin \u2013 the digital asset is exchanging hands at $71,789, just about 3% shy of its March 2024 ATH of $73,737.\u00a0<\/p>\n While the prospect of a new ATH has the crypto market on its feet, veteran analyst and trader Brandt thinks multiple conditions must be fulfilled to determine a confirmed breakout.<\/p>\n In a post<\/a> published on X on October 29, Brandt cautioned BTC bulls against over-enthusiasm without technical confirmation of a breakout. <\/p>\n Specifically, the analyst warned the bulls about the limitations of diagonal patterns \u2013 particularly those with slanted boundary lines \u2013 on trading charts.<\/p>\n Brandt explained that although \u201cnicking\u201d of a boundary line might excite the bulls, it does not represent a confirmed breakout.\u00a0<\/p>\n For a breakout to be genuine, Brandt has set the target price at $76,000, stating that Bitcoin\u2019s daily chart needs to close above this level, with an average true range (ATR) measurement confirming this move above Bitcoin\u2019s previous high set in March.\u00a0<\/p>\n For the uninitiated, the ATR is a technical analysis indicator that measures market volatility by calculating the average of true price ranges over a set period, typically 14 days. It reflects how much an asset moves, helping traders gauge potential price fluctuations and set more informed stop-loss or profit targets.<\/p>\n Further, Brandt notes that such a breakout must be validated by a close on Sunday at midnight UTC, to ensure it is not a fake breakout that ends up trapping bullish investors.<\/p>\n On the weekly chart, Brandt highlighted that Bitcoin\u2019s recent advance \u201chas only nicked important chart points,\u201d rather than breaking through with conviction.\u00a0<\/p>\n The analyst concluded that BTC\u2019s price has a substantial journey ahead before decisively forming a new support level.<\/p>\n Another crypto analyst, 0xAmberCT, highlighted<\/a> the significance of the strong resistance zone around $71,000 to $73,000. However, the analyst shared several reasons why this time might be different.<\/p>\n First, the high odds of victory for the Republican US presidential candidate Donald Trump might provide the much-needed fuel to the wider crypto market to start its Q4 2024 rally.<\/p>\n At the time of writing, Polymarket gives<\/a> Trump a 66.5% chance of victory compared to Democratic candidate Kamala Harris\u2019 33.5%. A Trump win is a net positive for the digital assets industry.<\/p>\n In addition, the recent interest rate cuts by the US Federal Reserve (Fed) and the heightened prospects of a \u201csoft-landing\u201d are expected to increase the market\u2019s risk-taking appetite. Risk-on assets like BTC are expected to benefit in a lower interest rate environment.<\/p>\n The analysts\u2019 assessment aligns with Bitwise CIO Matt Hougan\u2019s prediction<\/a> that BTC may \u201cmelt-up\u201d to $80,000 in Q4 2024.<\/p>\nImportant To Overcome $71,000 \u2013 $73,000 Resistance Level<\/h2>\n