Currently, the market is experiencing corrections. Does everyone want to know what the next move for BTC and altcoins will be? Don't worry, we will cover everything in this article. These are the topics we will address in today's article:
Technical analysis of BTC
BTC Dominance
USDT Dominance
Summary
of the technical analysis of Bitcoin: Breakout of the ascending wedge
Bitcoin recently formed a patternof an ascending wedge, which has now broken. The daily candle closed yesterday above the level of$111,000, indicating a possible short-term bullish move.Given this price dynamic, we could observe a bullish move towards the range of $113,000 to $114,000. This could represent an exit opportunity for those who opened long positions around $112,000 to $114,000.
Important note before talking about altcoins:
This analysis is for educational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Bitcoin's dominance at critical support: What does it mean for altcoins?
Bitcoin's dominance is currently at a key horizontal support level, an area where it has historically shown strong reactions. When dominance exceeds this area, it tends to bounce upward. When it is below, it is usually rejected. Currently, it remains above this level.
In my opinion, as long as this support holds, it is unlikely that we will enter a full-blown Altseason, the kind of rally where altcoins usually gain between 50% and 70% across the board.
However, this changes if we see one or two weekly closes below 57.5%. This would represent a clear break of support and could generate a much stronger performance for altcoins.
Historically, dominance has often briefly fallen below this zone, creating false breakdowns. If this happens again (a quick drop below 57.5%), it would be wise to close positions in altcoins, especially if a break is not confirmed.
What is the strategy?
If the dominance falls below 57.5% and then quickly recovers (another fakeout), it is better to be cautious with entries into altcoins. But if we receive weekly confirmations below 57.5%, that could indicate the start of a new altcoin season. Until then, patience is key.
USDT Dominance (USDT.D)
If we look at the USDT Dominance (USDT.D), it has also reached its weekly support zone and is currently trying to recover. Historically, when USDT Dominance rises, both BTC and altcoins tend to fall, as this reflects the transfer of capital to stablecoins.
A descending wedge pattern is also forming on the chart, which often breaks upward. However, according to the structure of the pattern, there is a possibility that USDT.D may first fall towards the range of 4.20% to 4.00%. If this occurs, we could see a short-term bounce in altcoins, which I believe could represent a good exit opportunity.
After that bounce, if USDT.D rises again, it could trigger another drop in both BTC and altcoins, which could offer a possible buying opportunity.
SUMMARY: If we combine all the points mentioned, it is evident that a short-term bullish move could occur very soon, possibly this week or next. This move could be a good exit opportunity, after which it would be wise to wait for a correction, which will give us a great opportunity to buy at lower prices.
Around the expected date for the rate cut next month, we could start to see a market correction. This correction could:
Lower SOL to $150
Bring ETH from $3,800 to $3,600
And cause a 30% to 40% drop in many altcoins
So get ready for this possible dump, so you can buy cheaper and at lower levels.
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