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Bitcoin has been a hot topic in the financial world, and it’s no surprise that many people are eager to learn more about it. In this blog post, we will provide you with the latest update on Bitcoin and altcoins, based on a recent video transcript. We will discuss the current state of Bitcoin, the potential for an altcoin season, and what to expect in the near future.
The Bitcoin Chart
Looking at the daily charts, not much has changed in the Bitcoin market. It appears that we are still in a wave four correction, with the important breakout point at the 78.6% retrace level extension of $43,000. To move towards the next Fibonacci level, we need to break above this level and reach the $50,000 mark. This will indicate that the current wave count is finished, and we can expect another shallow pullback or wave a to occur. The $34,060 level is the key support level for both wave counts, and a break below this level would provide clarity on which count is in play.
The Bitcoin Dominance Chart
The Bitcoin dominance chart is also worth paying attention to. Altcoins have started to gain momentum, while Bitcoin has remained relatively stable. This is a typical pattern that we see when Bitcoin consolidates and liquidity moves into altcoins.
If the trend line on the dominance chart breaks, it could signal the start of an altcoin season. A break below the last swing low would be a strong confirmation of the trend reversal. This would be significant, as the dominance chart has been in an uptrend since September last year, characterized by higher highs and higher lows.
Short-Term Outlook
In the short term, Bitcoin is still caught in a correction. There is a possibility that we may see another low, which would complete five waves down and signal the start of wave C. However, there is also a chance that the price is unfolding as a triangle pattern, with a potential move to the upside before coming down. Overall, we expect to see a wave C to the downside, with a support region between $34,070 and $39,260.
Potential Altcoin Season
The recent uptick in altcoins suggests that an altcoin season may be on the horizon. Historically, the flow of money has been from Bitcoin to Ethereum, and then to large-cap altcoins. However, this time, the sequence may be different. Ethereum is expected to outperform Bitcoin, but it’s uncertain whether the flow of money will follow the same pattern. Keep an eye on the altcoin market, as it may be the beginning of a new trend.
Conclusion
In conclusion, the current state of Bitcoin suggests that we are still in a correction phase. The key support level to watch is $34,060, and a break below this level would provide clarity on the wave count.
The Bitcoin dominance chart is showing signs of a potential altcoin season, and a break below the trend line and last swing low would confirm this. Whether Ethereum will lead the way or if the flow of money will take a different path remains to be seen. Stay tuned for further updates on the cryptocurrency market. Note: The content of this blog is based on a video transcript and is for informational purposes only. Investing in cryptocurrencies carries risks, and it’s important to do your own research and consult with a financial advisor before making any investment decisions.
