Bitcoin had the potential of completing a ten-bar two-leg pattern, but it continues to consolidate in a bull flag pattern. BTC has two more trading days left to reach our measured move target of $33,000, but what we favor occurring at this time is additional consolidation. While we still feel confident in BTC having a blowoff top, it will likely take more time in a trading range before it is ready to complete its move up.
Ethereum continues to mirror Bitcoin’s price chart but with less volatility. With major financial institutions such as BlackRock trying their hand at getting a Bitcoin spot ETF, it is only inevitable that the second-largest cryptocurrency gets one as well. Ethereum continues to remain a highly sought-after digital asset in the traditional finance space, and once there is a filing for an ETF, Ethereum will have its moment to shine.
Solana gives us an interesting insight into the broader market. SOL’s recent price action is the inverse of Bitcoin. Typically when Bitcoin increases sharply in value, it will takeout some of the residual value of the altcoin market, as can be seen with Solana. Right now the alts still have a bearish outlook, but once Bitcoin begins to turn up, we expect to see more bullish momentum for the rest of the market.
