- Bitcoin is coming to the end of a three-month wedge, and a big move is expected
- Three wicks this month seem like a liquidity grab
- Range high of $9,900 likely to be next port of call
Bitcoin is coming to the end of a three month wedge, which means a big move is to follow within the next 48 hours. The question is, which way will Bitcoin go? Our in-house analyst, Will Gambit from Cryptodaytraders.io runs down what he is seeing in the charts as we try to predict where Bitcoin and alts go from here.
Bitcoin Ready for $10,000 Again
Bitcoin has shown tremendous strength in coming back from some recent rejections, which gives me all the more reason to think that this wedge will resolve itself with a positive move:
Source: Cryptodaytraders.io
A retest of $10,000 is looking like a very possible option, with the recent dips into the blue range low region looking ever more like accumulation points. Bitcoin has bounced back from every dip into that region in the last two weeks, which gives me confidence that we are heading higher out of this wedge:
If we do move higher then the range high of $9,909 is a natural target, with the $10,400 region once more being the nut we need to crack in order to make a higher move.
If we drop out of the wedge then we will be looking at the $8,500 and $7,750 regions as our support points.
Alts Hold Firm Under Resistance Level
Alts have stalled somewhat, which is reflected in the status of the market cap:
Source: Cryptodaytraders.io
Having arrived as expected at the $90 billion mark, the alt coin market cap is hovering around a key resistance point. This looks to me like a period of accumulation underneath the resistance in advance of a push through it, with a Bitcoin move potentially being the catalyst. We have seen alts moving with Bitcoin in recent weeks and months and I have every expectation that this would be no different – a big move from Bitcoin would see alts follow either simultaneously or shortly afterwards, hopefully pushing through the line of resistance and rallying even harder.
The only caveat to this scenario is a break of the Bitcoin dominance trendline:
Source: Cryptodaytraders.io
Having dropped to the 65% region, Bitcoin’s dominance seems to have steadied and may be looking to break out from the downtrend that has been in play for a month, which has led to alts rallying as they have. Whatever Bitcoin does next, this will be a key metric to keep an eye on, as a break through this trendline will see alts pull back as Bitcoin takes center stage.
