#33 28 Oct 2021
After reaching ATH last week, we are now in consolidation mode.
We have recalculated the Main GP (golden pocket/yellow box) with the last movement now. That GP would be the last support in case of a dump, but it is quite probable that BTC will keep consolidating in the upper range.
However, we need to see all sides of the market as always. On the Bull side, we are creating a big falling wedge that is a bullish consolidation pattern. Also in a small timeframe, we see a 4h Bull Divergence which tends to be a good signal.
On the big picture we don’t see anything especially bearish, but mostly an uptrend continuation with some shakeouts like the one we had yesterday in altcoins, due to the fact that we are at an all-time high on leverage in all markets which can create that shake out.
Looking at the weekly chart, we can see that we arrived to new ATH levels and every time it happens, tends to be a bit of retracement.
Very interesting to see is that dominance finally flipped on the purple box, while BTC stopped the momentum. That gave a lot of room to altcoins. That’s the way the market tends to balance itself.
Now it has arrived at the main GP (Yellow Box), that could be a bounce place in case BTC Breaks Outs ATH. In case that this GP does not hold, and breaks down, we will see more actions on alts in the next weeks.
ETH is still trapped on the resistance of the last ATH and was dumped last week and yesterday at that point, being supported each time in the diagonal previous resistance, now turned support. It is preparing the break out to be done in the next hours/days probably.
TOTAL MARKET CAP INDEX
Total market index dealing with the break-out level of ATH as BTC is doing. Still in an uptrend.
ALTCOIN MARKET INDEX
This week, due to BTC consolidation, TOTAL2 has been able to arrive at the previous ATH and is still in an uptrend.
We can see how altcoins are popping here and there creating an intermediate altcoin season, pending to see what will be the next movement on BTC. Yesterday we retraced until the purple box, but now looks like we will try to break out soon.
The general market is in an uptrend without a doubt for the moment. The over leverage in all markets makes that we have shakeouts like we had yesterday in altcoins, but these shakeouts are good to reset the level of leverage and let the market continue in a healthy way.
As BTC is at ATH resistance, it can continue its consolidation or retracement here for some days, which gives some room to alts and dominance to retrace. The worst-case scenario for that retracement would be the 50-53K and the best-case would be the zone where we are now.
In the long-term view, nothing has changed, so the market remains bullish.