- Bitcoin has broken out of its downward trend since topping out at $58,000
- Should we see further strength we can start looking towards the topping out level, which is around $70,000
- Alts are perfectly placed for further gains too, but not if Bitcoin does its usual trick of sucking up all the liquidity
Bitcoin has been in a downtrend since topping out at $58,000 last month, resulting in a 25% correction that is typical of Bitcoin in a bull market. After threatening to pull right back to the $41,000 area it broke out of the downtrend last night having dropped to $43,000 during the week-long correction:
We can expect a small pullback after this trend-breaking move, with the $45,000 area looking good for support, after which Bitcoin can begin to reclaim the losses of the past week and then kick on. A look at the weekly chart shows us that the correction we have just seen was warranted and is similar in stature to what we have already seen in this bull run:
Given its 25% correction, the fact that we haven’t yet reached the fever pitch that ties in with the topping out of a bull market, and the fact that the Bitcoin dominance level has been skirting a three-year support line for weeks, we can assume that Bitcoin is about to engage in another upward move, possibly up to the $70,000 area.
Bitcoin Run Will Only Delay Alt Season
As we know, a mega Bitcoin run is usually bad news for alts, but we need not worry – the recent run has left us perfectly placed:
As we can see, the alt coin market cap surpassed 2018’s top last month, a level which it has since used as support during the current pullback. This is a perfect set up for a further move, although if Bitcoin really gets its skates on then it’s likely that alts will suffer on their Bitcoin pairings while their dollar pairings stabilize.
However, we all know what that means once Bitcoin tops out…boom!
