Bitcoin (BTC) has recently shown signs of weakness but despite all of that, I see a changing outlook and as responsible traders we need to adjust accordingly. Most of you are wondering how I turned from talking about “further downside to come” to being bullish on the market. Let me say that I still remain bearish on the market long term but it is hard to ignore present developments that signal further upside near term. The daily chart for EUR/USD shows us that it is the first time in a long time that we have seen the pair not only close above the 50 day EMA but see bullish follow up. We have now seen it face resistance at the 61.8% fib extension level but if we break past this level, then EUR/USD could rally towards the 200 day EMA.
As for Bitcoin (BTC) and other altcoins, I think there is a very high probability that we might see a bullish trend reversal. The daily chart for BTC/USD shows the price trading within a large symmetrical triangle that can be rightly characterized as a bullish pennant because the price was trading upwards when it entered the pennant. It is therefore very likely that we might see a break out of this triangle to the upside when the price exits out of the pennant. We also see the price trading within a large falling wedge which is another bullish indicator. I think there is a very strong probability that the price is not only going to break out of the falling wedge but also out of the symmetrical triangle to stage a fake out short term that would mislead many traders and investors into thinking the bull run has actually started.
Looking at ETH/USD, we see a very high probability of the price rallying not only towards $200 but even beyond that potentially above $300 before this move comes to completion. I think the next two months are going to be very bullish for the altcoin market and we might see a mini altcoin season. The ETH/BTC chart tells us that we are unlikely to see another downtrend before the pair tests the 200 day EMA. The same goes for Ethereum dominance (ETH.D) which has yet to test the 200 day EMA. Lastly, the dominance chart for medium and small cap coins other than Ethereum (ETH) which can be seen as Others Dominance (Others.D) on Tradingview tells us that we might see a strong bullish crossover in the near future that could lead to a strong uptrend in the altcoin market.