Bitcoin reaches yet another ATH, topping at just about $67,000, Bitcoin is without a doubt back in the bull run and once again the sky is the limit. Although we reached a new ATH, there hasn't been a sign of a blue sky breakout just yet, instead, Bitcoin is approaching the route to $100k in a calm and methodical manner. So with the ATH settled in, are we bound to see a correction sooner rather than later?
Ascending Channel Breakout
As we can see here, Bitcoin has been in an ascending channel over the last few months. However, this recent run has seen it aggressively break out to the upside of the channel. Normally, the channel is then re-tested to confirm whether the previous resistance has now flipped to support. At this moment in time, we are unable to say if it has but it has thus far bounced off the rising resistance which currently resides at the $60,000 mark.
For this breakout to be confirmed, the retest must be successful in flipping the previous resistance line into support. Although that being said, a successful retest doesn't necessarily mean we then go on a crazy move (although that is most definitely on the cards). Bitcoin could consolidate around this area for a lengthy period of time consistently testing the upper channel until it decides to make a move to the up or downside. If this is to be the case, this would be the optimal condition for altcoins. For the next week, I predict that this will be the case.
Technical Indicators
The EMAs are also getting to catch up and as we know, when Bitcoin goes on a run like this, the 20D EMA is a very good sign of support as we have seen in the past. It currently stands at $57,700. There are yet to be any bearish divergences of significance which suggest that the run has shown a lot of strength thus far with no sign of any crazy corrections along the way. We can see on the MACD and Squeeze Momentum indicators that both signal a sell signal at this moment in time, suggesting that we are currently in a downtrend. Although the momentum of this trend is yet to fall into bearish territory (under 0) and once again with a lack of bearish divergences in this price movement, I do not believe a 25%+ correction is underway.
We can see from the Fibonacci Retracement levels that Bitcoin is currently testing the 0.246 Fib at $60,000. I believe we could see a further dip towards the $57k area testing the 20D EMA or another very likely scenario is that Bitcoin could stay here testing the $60,000 mark whilst the EMA catches up and then begin to make another move.
Bitcoin Dominance
Here we can see Bitcoin Dominance has been taking a hit as altcoins begin to play catch up. We can see it fell through the 46% support level and as a result, I now expect it to test the 44.5% level which gives altcoins a little more room to run which further ties in with the idea that Bitcoin could be consolidating over the next few days.
However, that being said, the macro landscape (weekly TF) is still looking very bullish for Bitcoin dominance as it proceeds to carry out the motion of the double bottom. Of course, it doesn't have to be the smoothest and it still has some way to go before it even tests the neckline yet alone thinking about breaking through. Although that being said, I do believe over the course of the next two months overall, Bitcoin will continue to outperform most of the crypto market.
Bitcoin To $100k Baby
In the macro landscape, Bitcoin looks extremely healthy. All the technical indicators are looking extremely bullish and there is currently no sign of Bitcoin facing another major correction like the one in May and in all honesty, I feel very comfortable at the moment. November and December are classically great months. The ascending channel breakout could be the final retest needed before we launch off.
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