Bitcoin has broken through an important level. My next goal is $130,000 (here's why). USDT's dominance is cracking, but this could be a sign of a turnaround for the market. Altcoins are lagging, but I'm tracking the ALTBTC chart to find out where the next pullback will come from.
It’s simple: This is Bitcoin’s next target
We often get asked where Bitcoin is going next, but the truth is, no one knows. But here's the problem. I have been following this same trend-based Fibonacci chart since Bitcoin was below $50,000 and it has been very helpful to me.
I will keep it simple by focusing on the weekly outlook and observing how Bitcoin respects Fibonacci levels as both support and resistance. After this recent breakout, my next target is $130,198, which perfectly matches the 3.618 Fib extension.
Of course nothing is guaranteed, but my reasoning is as follows.
Global markets remain stable and no unexpected surprises have occurred. Adoption continues to increase. The US may consider cutting interest rates by another 25 basis points.
This combination of technicals and market sentiment has me eyeing that $130,000 zone. As always, let the chart tell you what happens next.
Source: TradingView Source: TradingView
USDT.D: Showing signs of weakness?
If you've read my previous articles, you know that I've been watching USDT Dominance (USDT.D) like a hawk. why? This is because you can understand the market psychology.
When USDT.D rises, it usually means traders are moving to stablecoins and is a sign of caution. When USDT.D falls, funds tend to flow back into the crypto market, creating positive momentum.
Currently, USDT.D has broken the massive uptrend that has been in place since November 2017 and is sitting at an important daily support level.
The way I see it, it's like someone mining gold with a pickaxe. You have to hit the rock over and over again until it finally cracks. If this support level breaks, I am keeping an eye on the 113 Fib level. This means a drop of about 10%.
In my opinion, if that happens, we will see a positive reaction across the cryptocurrency market. But as always, test this for yourself and decide for yourself.
Source: TradingView
Altcoins, altcoins…where are they?!
Last week saw a lot of volatility across the altcoin market, and to be honest, this wasn't surprising. As you may recall, last week we shared an OTHERS chart showing altcoins reaching an all-time high resistance zone.
What I'm seeing now is:
Instead of focusing on the USD pair, I am shifting my attention to the ALTBTC pair. This will help you get a clearer picture of altcoin performance compared to Bitcoin.
Let's use SOL/BTC as an example.
The chart below shows SOLBTC approaching a major daily support zone (highlighted in green). Looking to the left, SOL has historically risen further from this level. Nothing is guaranteed in trading, but it is an area that I pay close attention to based on past performance.
Why Check the ALTBTC Chart If an altcoin loses value against Bitcoin, it can be difficult to tell when it will reverse. By looking at their BTC pairs, you can identify areas of interest where changes may occur.
The relationship is simple. When an altcoin starts gaining value against Bitcoin on the ALTBTC chart, its USD price often then reflects that movement. So the next time Bitcoin makes a big move and altcoins seem to be lagging behind, it might be worth pulling up on the BTC pair and seeing how it goes.
Source: TradingView
Good luck! May the crypto gods bless your trading!
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Written by Matthew Stella. At the time of this writing, Bitcoin was trading at $107,035.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author accepts no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always do your own research and consult a professional financial advisor before making any investment decisions.
