As a seasoned analyst with over two decades of experience in the financial markets under my belt, I must say that the current state of Bitcoin and the altcoins is a fascinating dance between bulls and bears. The recent surge in price has been nothing short of breathtaking, but as we all know too well in this game, what goes up must come down – or at least take a breather.
Bitcoin ($BTC) has nearly reached a potential peak of around $90,000, but has since dipped to $85,350, showing significant volatility following its substantial rise. Most altcoins are currently in the negative, as investors watch for further updates. Could we see a noticeable pullback in Bitcoin and other altcoins?
Bitcoin next move is key for altcoins
It’s now a critical moment for both traders and potential investors, as the significant increase seen in Bitcoin and many other cryptocurrencies may be approaching a halt or potentially a substantial pullback.
The crucial factor in everything moving forward is how the Bitcoin price behaves from this point. It’s possible that it might dip to establish a lower support level, such as around $80,000 or even $74,000. However, it’s also possible that the current price movements will form a flag pattern on the chart.
The wick dropping to $85,300, quickly purchased by the bulls, suggests that buyers are unwilling to allow the price to fall further. However, it’s still early, and the price might continue to decrease until fear begins to spread, potentially causing the price to revert back to the earlier levels mentioned.
Crypto Total Market Cap reaches $3 trillion
Examining the total value of all cryptocurrencies, we notice that it came very close to hitting the $3 trillion threshold. Interestingly, this level aligns with the 1.272 Fibonacci ratio, suggesting it could be an ideal spot for a temporary pullback before resuming its upward trend.
At the base of the graph, you can see that the Stochastic RSI Momentum Indicator has recently peaked and started to decline. This downward movement suggests a potential drop in price momentum until the indicator crosses back above this point. Approximately 80.00 on the scale might offer the most promising opportunity for bulls.
Danger for altcoins as potential double top on Total3 chart
The Total3 chart represents the total market value of all cryptocurrencies aside from Bitcoin (BTC) and Ethereum (ETH). It offers a comprehensive view of the performance of alternative cryptocurrencies, or “altcoins.
It’s clear that the price has almost exactly hit the 0.786 Fibonacci level, after which it surged higher in this week’s candle. But beware, there’s a potential risk of a double top forming – a pattern often followed by a bearish reversal.
Moreover, we’re still in the early stages of the week. If the value of altcoins collectively drops below 0.786 and the weekly chart ends with such a decrease, this would result in a long lower wick (shadow), which is a very bearish sign indicating a potential reversal in trend.
Can Bitcoin form a bull flag and negate bearish scenario?
To prevent this unfavorable outcome, Bitcoin must transform the present downturn into a ‘bull pennant’. If the Bitcoin price maintains fluctuating near the $90,000 horizontal resistance level, a forming bull pennant would suggest a very optimistic continuation pattern. This would also probably secure the future of other cryptocurrencies.
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2024-11-12 17:02