- Bitcoin battles to break through the $64,000 resistance level but struggles to hold.
- TOTAL and OTHERS charts look primed for a breakout, but will they fail again?
- Altcoins show promising reversal patterns—will the retest hold as FOMO kicks in?
Bitcoin and Altcoins Rally Together—But Is It Here to Stay?
Bitcoin and the altcoins have surged since the Federal Reserve cut rates by 50 basis points, sparking excitement across the market. Bitcoin is up 10%, and several altcoins have launched into significant rallies. But is this rally built to last?
While “Uptober” is approaching and sentiment is high, I’m still cautious, taking profits when opportunities arise to protect capital. Crypto markets tend to get euphoric when they surge, and this often happens at key resistance levels as FOMO (Fear of Missing Out) sets in. But when the market bottoms out, things go quiet—even though Bitcoin has seen massive gains over the past year.
So, what am I watching to prepare for the next breakout or retest?
Bitcoin: The King Is Struggling at $64,000
Bitcoin remains the key to a healthy crypto market. When Bitcoin is stable or climbing, the market tends to follow. Currently, Bitcoin is struggling to break above $64,000. For the past five days, the daily candle has attempted to push through but has been met with strong resistance.
If Bitcoin flips this $64,000 resistance into support, we could see a potential run toward $70,000. A confirmed recent interest rate cut in China could provide the momentum needed for this breakout, but for now, we wait and watch.
TOTAL and OTHERS: Two Charts I Check Every Day
The TOTAL chart represents the overall crypto market cap, while the OTHERS chart excludes the top 10 coins by market cap. By watching the TOTAL chart, I can gauge whether we’re facing breakouts or fake-outs. It’s clear that we’ve experienced several fake-outs before, where prices briefly break out of downtrends, only to hit resistance and fall back.
The OTHERS chart, which tracks smaller altcoins, helps me identify when altcoins are rallying and when it might be time to take profits as resistance nears.
Reversal Patterns: What You Need to Know
Reversal patterns signal potential trend changes, and some of the key ones include:
- Inverse Head and Shoulders: A shift from bearish to bullish.
- Double Top/Bottom: Indicates a reversal after two peaks or troughs.
- Rising/Falling Wedge: Suggests a trend may be losing momentum.
Spotting these patterns can help traders time their entries and exits. On the Empire Crypto Trading platform, you can access a full Reversal Pattern lesson and a range of FREE cheat sheets.
With altcoins currently overextended, I’m locking in profits while keeping an eye on successful retests of key reversal patterns. Several momentum indicators suggest a pullback may be on the horizon before we see further upside.
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Written by Matthew Stella. At the time of writing this article, Bitcoin was trading at $63,530.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author takes no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.
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