Bitcoin (BTC) has been on a tear and there’s no escaping it. But the majority of high-cap altcoins are seemingly suffering at the hands of this bull run, leading to the question: have we had our altseason already? Is it over or is there more to come?
Multi-year resistance levels
BTC/USD 12-hour chart. Source: TradingView
Bitcoin has been eating up multi-year resistance levels like Pacman on an amphetamine-induced rampage lately, smashing through $11,300, then $12,400 then $13,100 before being rejected around the $14,000 level.
After $14,400 there isn’t much in the way of resistance until $17K before a new all-time high can be printed for the king of cryptos. But the question is can Bitcoin run out of steam?
Well the BTC dominance has been on a massive rip since September, suggesting that altcoins are being sold off to pile into Bitcoin to push past this last major level of resistance.
Market cap Bitcoin dominance 4-hour chart. Source: Tradingview
The 4-hour chart for BTC market cap dominance shows that it’s currently resting around 64.8% with very little resistance between 67.80%, representing a 4.44% increase and 68.98%, representing a 6.34% increase.
These numbers may seem small, but the adverse effect this has on major altcoins is crippling bag holders of some of the most popular projects in the space.
Chainlink about to plunge back into single digits
LINK 1-day chart. Source: TradingView
It was only a few months ago that people were cheering for Zeus Capital to get liquidated in a $20m short when LINK was trading under $10. The price pulled a similar stunt to Bitcoin in December 2017 by rocketing past the expected $10 price and overshooting all the way up to $20 before correcting.
The most recent bounce price for LINK was around $7.50. If that figure shows its face again, I think the “marines” will start to lose their love for their beloved LINK as a price of $6.50 looks more likely by the day based on previous support and resistance levels.
The whales are likely in the know too, as 400,000 LINK was sent to Binance earlier today.
If we cast our minds back to what happened to Bitcoin at $20K, it’s taken a good three years to start to return to those levels. So the smart money could be piling out of coins like LINK to load up on Bitcoin before the next big leg up.
I’ll be watching this closely to see where it bottoms. But for now, it seems another large altcoin may have already done so, which could pave the way.
ETH price may have bottomed
ETH 4-hour chart. Source: TradingView
I’ve seen a lot of people calling for $300 ETH in the short term, but I personally don’t see it. In fact, it seems Ether has continued to print higher lows since the end of August and has been ranging nicely in an ascending channel.
The support of the channel has remained intact for several months and held at $370 after its rejection at $400. Should this pattern continue and break past the mid-level resistance around $400, then I…