It’s Time – Crypto Piece
Bitcoin Is Making Its Move
Bitcoin bulls have shown significant strength in October, as anticipated in an earlier article titled “October Is For Bitcoin Bulls” from 4th October, which can be found here. Bitcoin has not only successfully reclaimed the 9, 21 and 55-day EMAs with all 3 curling up but has also broken above the 200-day SMA and the resistance zone in red in the chart below. However, the candle is yet to confirm this break, so today’s close is going to be critical.
The next major level of resistance is around $30.2k. Break that and the road to $37.5k should be smooth sailing as mentioned in our first crypto piece that can be found here. The downside level to hold is $26.5k i.e., the previous higher low.
Weekly Chart Waiting For Confirmation
Bitcoin’s weekly chart looks very promising as well. This week’s candle has the potential to breakout from the downtrend line that connects the November 2021 highs to the Summer 2023 highs. This would also confirm a break above the 200-week SMA, which would provide further confluence for upside. Lastly, the RSI has broken out of its downtrend that began in April 2023, which can be considered as an early bullish signal.
Million Dollar Bitcoin Blueprint
This is a fractal secret very few will tell you about, but we’d like our subscribers to be able to gain a major edge in this market to make as much money as possible! Bitcoin has been very closely following the 2014 to 2016 cycle in terms of the timing of the big moves.
Below is the 2014 to 2016 fractal lined up against the 2021 to 2023 period. Notice how the major peaks, resistance range periods and breakouts occur very close in terms of the timing. This fractal has not been changed in any shape or size. Let us know in the comments below if you’d like us to share a step-by-step guide on how to replicate this fractal on Tradingview, so you can follow it every step of the way. While fractals work until they don’t, this one has been very effective for 2+ years at this point (in terms of the timing).
But What About Altseason?
Good question! The ETH/BTC chart has been skewed in favor of Bitcoin since the ratio found a major top in October 2022. This ratio has moved from around 0.08 down to around 0.054 and is nearing the value zone (marked in green below). There’s also a potential for a bullish RSI divergence with the ratio making a lower low and RSI making a higher low, but that is yet to be confirmed. Even though the ratio might have more downside in the coming months, we believe that the value zone will provide good altcoin setups as ETH/BTC ratio finds a nice bounce from this region. Remember, a bounce is not the same as reversal, but a lot of money can still be made in such a bounce, especially in the altcoin market. Risk management will be key here.
Let us know in the comments below if you’d like us to provide regular altcoin setups in the coming weeks as ETH/BTC ratio bounces, and altcoins catch some good bids. Until next time!
Disclaimer - All materials, information, and ideas from Cycles Edge are for educational purposes only and should not be considered Financial Advice. This blog may document actions done by the owners/writers of this blog, thus it should be assumed that positions are likely taken. If this is an issue, please discontinue reading. Cycles Edge takes no responsibility for possible losses, as markets can be volatile and unpredictable, leading to constantly changing opinions or forecasts.