Altcoins dropping as Bitcoin ($BTC) starts to run out of steam

by

As a seasoned researcher with a decade-long career in analyzing cryptocurrency markets, I’ve witnessed countless bull runs and bear markets. The current state of Bitcoin ($BTC) feels reminiscent of a familiar dance – the waltz between the king and his court – but with every dance, there comes a moment when the music slows down and the dancers must adjust their steps.

It’s possible that Bitcoin ($BTC) has peaked temporarily at a value of $106,500. As the leading cryptocurrency appears to be losing momentum, it seems that other digital currencies like Ethereum ($ETH), Solana ($SOL), and Sui ($SUI) might experience the impact of this shifting wind direction. What can we anticipate for Ethereum, Solana, and Sui in the near future?

It seems that the impact of gravity (market forces) might be noticeable in the Bitcoin market. Many indicators suggest an extremely overbought situation, implying a possible price correction may be imminent.

How would the alternative cryptocurrencies (altcoins) behave if this event occurs? Generally speaking, during this bull market, it’s been observed that when Bitcoin ($BTC) decreases in value, altcoins tend to follow suit, though typically at an even faster rate of decline.

Is it possible that the situation might differ this time around? With Bitcoin showing signs of stabilizing or moving sideways temporarily, there’s a chance that the alternative cryptocurrencies (altcoins) could seize this moment and experience an uptick or rally, which is often referred to as an “altseason.

Bitcoin Dominance breakdown about to be confirmed?

The Bitcoin Dominance chart (BTC.D) indicates a fierce competition at this moment. At one stage, dominance surged above the upper boundary of the wedge pattern, only to drop down through the entire wedge. Currently, it’s slowly climbing again, potentially preparing to challenge the lower trendline. If a firm rejection occurs at this point, it might serve as a potential indication for altcoins to gain some momentum.

$ETH bulls need to hold $3,900

The current price of ETH stands at a critical point. If it manages to stay above the robust support level of $3,900, there’s a chance that this could become the foundation for the remainder of this bull market. In the immediate future, the price might drop further, but our goal is to maintain this support level by the end of the weekly period.

Last week’s “hammer” candle, characterized by a large wick in the downward direction, suggests that there might be significant potential for upward movement in the coming days. The price behavior this week could prove crucial.

$SOL heading back to very strong $202 support level

The weekly graph of $SOL appears quite clear-cut. Currently, the price is trapped within an ascending triangle pattern, but it seems likely that the price might dip back to the robust horizontal support level at $202 before attempting another bullish move. This potential drop could trigger a breakout above the top of the triangle, leading to a significant surge in $SOL’s value.

$SUI rejected at 2.618 Fibonacci

In early November, the price of SUI experienced a significant surge once the ‘cup and handle’ pattern was validated. Now, at a key Fibonacci level of 2.618 for the entire SUI price movement, there has been a rejection. If we examine Fibonacci levels specifically for this upward trend, potential targets for a reversal could be around $3.97 and $3.70. However, if the price dips below $2.98, it might signal an end to the uptrend. In most cases, though, this appears to be just a normal correction.

Read More

2024-12-16 15:16