Alts can keep trying and failing but one day they will push higher.
Meanwhile keep this in mind and don’t take anything for granted, they may or may not breakout soon. If past price action somehow repeats it can push higher and many alts may not retest some of their previous lows but who knows.
BTC seems to be in the final stage of this consolidation and more alts seem to be pushing higher. We still can’t be sure how and when the breakout of this consolidation will happen.
1) BTC can move higher soon enough; 2) lag there for a while or 3) even dump a bit before breaking this 2 years resistance, but one thing is now clear, we will breakout from this resistance and move higher sooner than later.
We also know that after pushing higher the strategy needs to be adjusted. Everything will move faster, harder and with less weeks in red, meaning less opportunities to buy lower.
Meanwhile keep an eye on Alts Market Dominance to see where the next support/resistance is. We have so many possible scenarios but more Bitcoin lags, higher is the chance that alts keep pumping well. Many investors keep ignoring alts however some of this alts broke their descending channels/patterns and started new trends.
BTC is trading above the 200 Days SMA (Simple Moving Average). We have now a full daily candle above that Moving Average but it doesn’t mean BTC is safe or will continue pushing higher. We can expect this second break (previous failed) to last but we need more confirmations.
At this point it doesn’t make sense to remain Bearish. BTC broke the descending channel formed since July 2019, it retested that resistance and bounced from it. BTC still have plenty of resistances to break and it may continue going down nevertheless price action is historically Bullish above that Moving Average (we don’t have so many breaks and failures in BTC price history).
6 Weeks ago BTC traded above the Weekly 50SMA (yellow dotted line) but at that time the 21 Week SMA (blue dotted line) was higher than it is now and sellers won that fight. Nevertheless, If BTC starts trading above the Weekly 21SMA, we may start the next leg up. If not, we remain Bearish for short and mid-term.
As we know, BTC produced a very strong impulsive move from 3k to 14k but it doesn’t mean it will not go below 6k again. In fact we don’t have much support below 6.3k and revisiting 6.9k can be the catalyst needed for another crash to 5k. Nothing is granted but we already saw a strong dump when BTC broke down the 3Day 200SMA and something similar can happen again.
The only way to avoid that would be holding above 7.4/7.5k and finally pumping well above 8.1k. 9.5k/10.3k is the next resistance, if we retest that level and confirm support near 8k we may be over with this wave 2 but almost everything is suggesting the opposite. We should expect more lows, eventually another crash (capitulation) liquidating over-leveraged traders/investors. Don’t be one of them.
While BTC is pushing higher, breaking the previous resistance (near 7.5k) alts keep dumping. ETHBTC is only 5% above the last low (achieved in September 2019) and we don’t know what will happen next. Many expect BTC to pump but honestly we need more than this to be optimistic. BTC clearly needs to show strength holding above 7.5k and breaking 8.5k. If it doesn’t happen 5k remains our next target.
else is also struggling or even achieving new lows. BTC is failing to stay
above the 50Week SMA and the most likely scenario under this conditions is
visiting the 200Week SMA (at the moment near 5k).
For any Bullish scenario BTC should stay above 6.9k and it also needs to close the month above 7.5k.
If we consider Alts Market Dominance we still need to push more than this to be excited. Sooner or later Alts will start a consistent Bull Run like BTC is doing but meanwhile we need more Bullish price action than what we saw. What I want to highlight is the fact that Alts Mkt. Dominance tested the Weekly 21 SMA and dipped to the 9SMA. If Alts remain above the 9 Week SMA and even push above the 21 Week SMA everything may start moving much faster but until it happens they can keep lagging.