Bitcoin continued pushing higher over the weekend, hitting $10,200 on Sunday, followed by a correction to the $9,700 range to start the week. The dip also reset some alts that were looking overextended and were therefore due a correction, affording those on the sidelines the chance to load up for another assault on further highs.
As we can see from the above chart, BTC is still well within its upward channel, but ran out of steam as it hit $10,200 late on Sunday, retracing to the $9,700 range as a result. This rejection is an indication that BTC has temporarily run out of juice, but given the overall trend of the market this is nothing to worry about. As we have seen many times before, when the trend is up, as it is now, then these are standard corrections on the stairway to Heaven, and are much healthier than the kind of ‘taking the elevator’ parabolas we saw in June last year and also 2017.
Sentiment Shift Predicts Correction
Sentiment in the community changed notably as well, with many more calls for a correction appearing over the weekend:
With increasingly steep trendlines & the recent break of trending resistance (shown in red), we could finally be close to the climax of this move.
Once a supporting trendline finally breaks we’ll likely see a healthy pullback. Until then, expect fireworks. pic.twitter.com/Hvtk8WHB4J
— HornHairs ? (@CryptoHornHairs) February 10, 2020
I am bullish btw, just thinking this current move is getting exhausted.
I’d prefer to see a healthy retrace to 94-95, maybe even a wick lower at some point around 9.2, then start pushing hard with fresh support/new buyers also supporting the move.
— Chase_NL (@Chase_NL) February 9, 2020
Alts too were looking a little overextended after nice runs that had taken on a somewhat parabolic feel:
However, given that fact that BTC’s dip back to the $9,700 area only resulted in a similarly minor loss of value to top alts before also springing back up again, we can be confident that a resumption of the uptrend is imminent for most alts too.
Alts and BTC Hand in Hand…For Now
Alts and BTC don’t often go up together, and the fact that they are proves that we are in the early stages of a bull market. When the market reaches FOMO stage, as it did in late 2017, a BTC surge is usually accompanied by a market-wide alt dip as money shifts from alts to BTC to ride the wave. When that happens, it is a clear indicator that a fully fledged silly season is upon us.