The cryptocurrency market is once again gearing up for a period of volatility and potential upheaval. According to CryptoJelle, an analyst, as Bitcoin’s dominance wavers and altcoins begin to surge, analysts are bracing themselves for what could be a tumultuous ride in the coming months.
As highlighted by Tony “The Bull” Severino, an analyst, altcoin season starts now as analysts have been closely watching the Elliott Wave Analysis of Bitcoin’s dominance chart, searching for clues about the market’s direction. This technical analysis method, which identifies patterns in price movements, suggests that Bitcoin’s dominance may be nearing a turning point.
The chart indicates that Bitcoin’s dominance has followed a typical Elliott Wave structure, with five waves in the direction of the primary trend and three waves against it. Currently, the chart appears to be forming a rising wedge pattern, a potential signal of trend exhaustion.
If Bitcoin’s dominance breaks above the critical resistance level of around 57.32%, it could signal a continuation of the bullish trend, potentially targeting the next resistance level around 60%. However, a break below the immediate support level of approximately 54.76% could validate the bearish implications of the rising wedge, leading to a potential decline in dominance.
Examining historical support levels provides additional insights into Bitcoin’s price dynamics. From the pivotal $3,000 to $4,000 range in 2018-2019 to the consolidation phase around $10,000 to $12,000 in 2020-2021, these levels have played crucial roles in shaping market behavior. Currently, support resides within the $25,000 to $30,000 range, reflecting the aftermath of the latest halving chop period.
Conversely, resistance levels, such as the $20,000 peak in 2017 and the $60,000 to $65,000 range in 2021, highlight significant hurdles that Bitcoin has overcome in its journey. The ongoing resistance around the $1.25 trillion market cap underscores the formidable challenges posed by recent market conditions.
An analysis of halving chops reveals recurring patterns of consolidation preceding major price movements. These periods of accumulation, observed in both the 2019-2020 and 2023-2024 halving chops, signify the underlying strength and resilience of Bitcoin amidst market fluctuations.
As Bitcoin continues to hover around the $71,017.62 mark, with a 24-hour trading volume of $53,063,024,383, investors brace themselves for the unfolding narrative of market dynamics.
