- Bitcoin needs to use the current range as support if it wants to retest $10,000
- Bitcoin is in a wedge that will resolve by the end of next week.
- Alts could be set for another run if Bitcoin dominance continues to fall
Bitcoin’s $1,000 upward move this week has proved once again that it is not done following the halving, and it is holding the anticipated post-halving dump at bay. If Bitcoin wants to continue this upward trend it needs to use its current level as support, with an eye on $9,900:
Holding the current level will give us the opportunity to look at higher levels, with $9,909 being the range high we would like to flip, and $10,400 being the boss level that is the ultimate break we would be looking for to eventually signal a full on bull run.
Were we to lose the current level and head back down, we are looking at previous levels to hold, all the way down to $7,800 to remain bullish. The situation will be resolved fairly soon, due to the fact that we are in a macro wedge that ends during the first week of June. The narrative is still bullish, suggesting upside is more likely than down, although breaking the levels above have proved tough to beat, especially the $10,000 barrier.
Alts Reacting Well to Bitcoin Dominance Wick
As we know, alts have been enjoying their moment in the sun, and it was encouraging to see Ethereum outpace Bitcoin on this latest leg up. Bitcoin dominance saw an extraordinary wick up to 70% earlier this week, but this was followed by a positive reaction from alts, which gives us hope that another alt cycle is imminent:
All signs point to Bitcoin dominance heading down to 63%-65% which would be great for alts, with some more epic gains like the ones we have recently seen becoming possible again. However, it should be noted that unless new money comes into the space during the next alt cycle it is simply existing money being recycled, meaning that pumps are more manipulated than in other circumstances and can stop soon after they start.
To protect against this, make sure that you have sells set when you enter a trade or you have a trailing stop that allows you to take profits in case of a dump.
