The Impending Shift in Crypto Markets: Altseason Next?
The Shape of Change: Bitcoin and the Symmetrical Triangle.
Leveraged Bitcoin traders, you’d better brace yourselves because the Digital King approaches a pivotal moment that could send prices veering in unpredictable directions. Recently, there has been a surge in leverage within the market, leading to market makers capitalizing on heightened emotions and erratic trading behaviors.
According to recent data from CoinGlass, $39 million in leveraged Bitcoin positions were liquidated in the last 24 hours alone, split between $18+ million in long positions and $20+ million in short positions. The Bitcoin price chart is currently displaying a symmetrical triangle pattern, which suggests uncertainty about the future price direction—unlike the more directional clues provided by ascending or descending triangles.
Meanwhile, the broader cryptocurrency market might be on the cusp of what’s colloquially known as “altseason,” a period in bull markets where altcoins often see exponential growth. Despite the volatile swings in Bitcoin’s price, the altcoin market capitalization has been holding steady, which suggests there’s still room to grow.
Traders are closely watching altcoins due to their potential for higher risk-to-reward ratios, especially during the next bull market phase. Traditionally, altcoin rallies tend to follow Bitcoin’s lead, often lagging behind before making significant gains.
While altcoins have recently pulled back from their mid-March highs, Bitcoin remains near its all-time high, currently trading at $70,810. The market’s attention is now turning to the Bitcoin dominance chart, which has maintained a level above 50% since September 2023, currently standing at 53.0%. This metric is a crucial indicator for predicting when altcoins might start to outperform.
Chart Analysis – BTC/USD
Bitcoin is chopping away at leveraged and spot positions and is currently showing a hard-to-decipher chart pattern. The symmetrical triangle that it is in could generate a breakout to either side, so the best course of action at this time would be a “wait and see” approach.
Bitcoin’s price is above the previous All Time High at $69,000, and above the 50-day Moving Average, so we can say it has good support. But it is still not out of the triangle and even if it breaks the upper boundary, it could still pull a 180 and cut through support.
Given the choppy state BTC is in, it would be better to wait for a retest of the triangle after the initial break unless this break is followed by a very strong move. The main levels to watch are the previous ATH at $69,000 and the current ATH at $73,794.
