Good morning, crypto traders! Correction than resistance, especially considering that the risk-on sentiment still persists after softer US jobs data reduced pressure on the Fed to keep raising rates. This can keep risk-on assets in rally mode.
Back on August 21, we discussed Bitcoin as one of the strongest assets in the ongoing crypto run-up, expecting a pullback before another move higher. At the time, we were looking for support around $72,000–$74,000, followed by a potential push toward the $83,000 area. CHECK IT HERE
Since then, Bitcoin has continued to rise nicely within the projected five-wave impulse, as anticipated. Due to the current slow and sideways price action, we assume Bitcoin is now in a higher-degree wave (4) correction. It can still retest the $82,000–$80,000 support area before resuming higher into wave (5), potentially also as part of a diagonal formation.
The OTHERS chart, which excludes the top 10 cryptocurrencies, could also be consolidating within a wave (4) bullish running triangle before a bullish continuation in wave (5) of C/3. If this scenario plays out, it could keep ALTcoins in recovery mode.
The BTC.D/OTHERS.D ratio chart is also moving lower, suggesting that ALTcoins could continue to outperform Bitcoin, as wave 5 of the impulse may still be missing. This means some ALTcoins could still have room to push higher even if Bitcoin continues to consolidate, although deeper pullbacks remain possible for some ALTcoins if Bitcoin starts correcting.
For a detailed view and more analysis like this, you may want to join our live webinar today on Monday, October 05 @ 15.00CET: DIRECT LINK
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