Altcoins dropping as Bitcoin ($BTC) starts to run out of steam
Bitcoin ($BTC) may have topped for now at a price of $$106,500. As the king of the cryptocurrencies starts to run out of steam, the altcoins are beginning to feel the effects of this new wind change. What’s next for Ethereum ($ETH), Solana ($SUI), and Sui ($SUI)?
It really does look like gravity is starting to have its effect on the price of Bitcoin. Most indicators are now showing a very overbought condition, and therefore it is likely that a correction could be about to happen.
So what about the altcoins when/if this takes place? Market wisdom so far in this bull market is that whenever $BTC drops in price, the altcoins do the same, but at a more accelerated pace.
Could things be different this time? There is the possibility that as Bitcoin potentially tracks down and sideways for a time, the altcoins could take the opportunity for a bit of an altseason surge.
Bitcoin Dominance breakdown about to be confirmed?
Source: TradingView
The Bitcoin Dominance chart (BTC.D) shows a real tussle right now. Dominance rose above the top trendline of the wedge at one point, then fell all the way through the wedge, and is now creeping back up to perhaps test the bottom trendline. If a strong rejection takes place, that would be the signal perhaps for altcoins to have some fun.
$ETH bulls need to hold $3,900
Source: TradingView
The $ETH price is at a very important juncture. If the price can hold above what is now extremely strong support at $3,900, there is the possibility that this could be the new base support for the rest of this bull market. In the short term price action, the price may well go lower, but holding the support at the weekly close is the aim.
Last week’s hammer candle with a huge wick to the downside is a sign that there may well be plenty of upside to come. This week’s price action could be critical.
$SOL heading back to very strong $202 support level
Source: TradingView
The $SOL weekly chart looks fairly straightforward. The price is within a bull flag, although it looks as though the price may well revisit the very strong horizontal support at $202 before making the next upward bid. This could result in $SOL finally breaking through the top of the bull flag and heading much higher.
$SUI rejected at 2.618 Fibonacci
Source: TradingView
The $SUI price really took off in early November, once the cup and handle pattern was confirmed. Only now, at the 2.618 Fibonacci for the entire $SUI price action, has it been rejected. Looking at the Fibonacci levels just for this upward move, it can be seen that $3.97 and $3.70 are decent possibilities as targets for this reversal. Looking at the worst case scenario, If the price falls below $2.98, this could signal the end of the upward trend. Otherwise, this is likely just a healthy correction.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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