This Altcoin Proxy Looks Poised For Liftoff
Bitcoin, TOTAL3 and LINK Update
IN TODAY’S REPORT
What we cover: TECHNICAL VIEW Edition. Bitcoin supply area. Alts look poised. LINK update.
Bitcoin’s Bearish Controlling Candle
As the spot Bitcoin ETF approvals become a distant memory, Bitcoin now crabs sideways in a mini basing pattern following the correction we (correctly) anticipated and the subsequent modest bounce to current levels.
Even if Bitcoin manages a breakout above its roughly week-long trading range — something which would be constructive — a minor supply area sits just above current levels and will likely serve as short-term resistance.
The key to understanding this probable short-term price scenario lies in the January 12th bear candle, a sharp expanded range breakdown on high volume. The open and (to a lesser degree) midpoint of such bearish expanded range candles — Controlling Candles — typically serve as resistance when tested. Is this a major obstacle for the king crypto? No, but worth noting as Bitcoin bases just below. It could certainly stop or delay any move to a new 52-week high in the short-term.
BITCOIN (BTCUSD). Daily Chart with 100-Day Moving Average & Supply Area.
More positively, the measure of total crypto market cap excluding Bitcoin and Ethereum called TOTAL3 has been consolidating in a bull flag channel (see green highlighted area) for most of 2024 so far, but now bases just below its upper boundary. What’s the significance? In short, this proxy chart for Altcoins now looks poised for a potential breakout. Consider getting your alts on, if so inclined.
TOTAL MARKET CAP Excl. BTC & ETH (TOTAL3). Daily Chart with 100ma.
Featured in our Altcoin edition last week, LINK broke out as anticipated.
“Chainlink’s three-month long basing pattern has found support at its rising 100-day moving average (100ma) where it has bounced in recent days as it moves closer to the highs of its consolidation. This high base is mature in our view, having already tested key support.” —REKTelligence Report 1/31/24
This leading altcoin — now #10 in the top ten coins and tokens by market capitalization according to coinmarketcap.com — just broke out sharply from its months-long base and looks ready to continue its advance toward its 2021 highs in time.
CHAINLINK (LINKUSD). Daily Chart with Long-term Moving Averages.
Look for a STATS-based EDITION soon!
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