Bitcoin looks like it is ready for further highs after a short period consolidation, with alts potentially about to move in tandem. Our in-house analyst, Will Gambit from Crypto Day Traders, runs the rule over Bitcoin and the alt market to see where we could be headed as the bull market picks up steam.
Bitcoin Looks to Break Out of Range
Bitcoin is looking more and more like it wants to break out of its current consolidation phase and push on towards new yearly highs. On a lower time frame we are making our way to the range high, which I expect us to break sooner rather than later:
Source: Crypto Day Traders
Everything is pointing towards another test of the $11,500 level following an escape from this range, with the $11,500-$11,700 range being the last boss level before we can look at further serious gains:
Source: Crypto Day Traders
What Bitcoin does at the $11,500 level will really give us an idea of where we are headed in the medium term. Were we to break through and come out above $11,700 we can start talking about the $12,000s and beyond, with all time highs not out of the question this year given Bitcoin’s fundamentals and the way the likes of gold and silver are performing.
If we get rejected hard at $11,500 we may see a pullback to retest the $10,500 level and perhaps even wick below it to gather some liquidity before trying again, but in my opinion this will only be a short term pullback before another attempt:
Source: Crypto Day Traders
Bitcoin is looking so good from both a technical and fundamental standpoint right now that barring a black swan event we should see higher valuations over the next weeks and months.
Alts on a Knife Edge
As for alts, with Bitcoin looking so strong alts have understandably taken a breather of late. The good news for alt coin holders however is that Bitcoin dominance is still being rejected at the point that we would like to see in order to experience further alt gains, but we are at a key point in terms of where alts go from here:
Source: Crypto Day Traders
When looked at in conjunction with the alt coin market cap, we are really testing the key level of $120 million that I have been stating for some time is the point at which alts can really go on a rampage:
Source: Crypto Day Traders
The good news here is that Ethereum is already running, and if Bitcoin dominance falls while the Bitcoin price rises then the ideal scenario of Bitcoin and alts running together could be upon us as.
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