ScottMelker

ScottMelker

Bitcoin has avoided bearish divergence, for now, and is sustaining momentum above the previous all time high. This is about as bullish as it gets, honestly. There’s nothing to worry about here for now. All systems go.

ScottMelker

As you know, I’m a long-time ETH bull, and I see its recent underperformance as a major opportunity. BlackRock and other institutions have effectively endorsed Ethereum with the introduction of ETFs and are actively choosing the chain to tokenize real-world assets. Historically, ETH underperforms in this phase of the cycle before making a significant move. We...

ScottMelker

Things continue to look generally bullish, with Bitcoin closing well above its previous all-time high yesterday. The day also saw the largest bullish volume since that previous high, which confirms the breakout. That said, there are signs we could see a pause. The 12-hour chart just confirmed overbought bearish divergence, which may also appear on the daily...

ScottMelker

Blue skies. Bitcoin made a new all time high, smashing through $73,800 and hitting $75,000. What is there to say? The bull market is in full swing.

ScottMelker

Last week’s candle had an ugly close, with a small body and large wick up. This is a sign of sellers stepping in and pushing price down - not a surprise on the first attempt at breaking all time high resistance. Trading Alpha is still showing grey dots, meaning the bullish trend is intact. I am not worried here at all, just waiting for the election to pass to...

ScottMelker

Bitcoin came within a few hundred dollars of a new all time high - then flushed leverage and dropped back below $70K. Not unexpected. Today’s candle looks potentially very bullish, with a long wick down below support. We need to see it close up here. Things still look great.

ScottMelker

Consolidation under resistance usually leads to expansion. Sitting just under the previous all time high and gathering strength is actually what we want to see. It is likely only a matter of time before Bitcoin breaks up again.

ScottMelker

I am sorry to continue to beat a dead horse, but the altcoin cycle has not begun yet. Dominance just reached 60%, meaning that Bitcoin continues to put the smack down on your favorite smaller tokens. Long term, this could be a time to scale in, but if you are trading, there’s no confirmation yet that altcoins are set to outperform.

ScottMelker

Bitcoin has FINALLY broken above $70,000, making a higher high for the first time since the all time high in March. This has been the level to watch for months. Anything can happen in markets, but from a technical perspective the bearish arguments are dead, alongside the bearish market structure of lower highs and lower lows. We also have a golden cross between...

ScottMelker

As you can see, Bitcoin is still leading the charge and pounding altcoins across the board. There will be an altseason when this tops, which could be soon. But right now, Bitcoin is still the main gig in town. This continues to make new highs.

ScottMelker

Nice. Yesterday confirmed a bullish engulfing candle. bouncing beautifully off of support. We are still sideways, but this gives more confidence that there is no real local correction happening here. We still need to get above $70,000. For those who trade MA crosses, it looks like a golden cross between the 50 and 200 MAs is inevitable in the coming days.

ScottMelker

Bitcoin held support at $66,550 beautifully - it had a wick below to grab liquidity before heading back up. The last two daily candles closed and opened on that line. Things are looking better today.

ScottMelker

In yesterday’s analysis, I said that I was looking for a retest of $66,550 as support. We got that almost to the penny. Nothing alarming here at all, just a bit of retracement after a big move to the upside.

ScottMelker

We have had conspicuous bearish divergence with overbought RSI during the climb from $67,000 to $69,000. No surprise that we are seeing a pause or retrace before an attempted move above $70,000, which is the key level. It is likely we will see hidden bullish divergence if price stays here or goes lower - a lower low on RSI and a higher low on price, which would...

ScottMelker

Yesterday, I was looking for a retest of the $66,550 level as support, which happened. From a TA perspective, that means that price should head to $70,000 resistance next, but we know that charts are just ideas and not prophecy. Regardless, that’s what I will be watching for.

ScottMelker

I see nothing scary here. Right now, Bitcoin looks like it is heading back down for a retest of the $66,550 area. Even if that fails, we will look for another high low in this new sequence.

ScottMelker

Bitcoin looks like it wants to go straight to $70,000. The question remains - can it break this key level and make a higher high? The local $66,550 resistance is broken…

ScottMelker

We have a clearly defined local resistance at $65,550, exactly where the move in mid September was stifled. Price is squarely above the 200 and 50 MAs now, so most resistance is broken. Still, I want to see price above $65,500 and really $70,000 to think much of this recent move.