It will be interesting to see what kind of reaction there will be, if any, to Bitcoin testing yearly lows again. With such a strong downtrend it would seem unlikely to resist a re-test. A bounce would seem likely as many heroes will want to buy the low. But this may become a pull back before the trend continues down towards 5K, where Bitcoin could perhaps make yet another corrective rally and many will call the bottom yet again.
The alts are bleeding out with significant support breached, which will leave Bitcoin to sail alone with no significant support coming from alts. Crypto @ $209bn
Many are now calling the 'alt rally,' but for as long as Bitcoin remains in an ascending channel, it doesn't seem to be a reasonable risk/reward for going long on alts, or even buying the coins, as the bottom could fall out at any moment. If the channel breaks to the downside, perhaps a reasonable shorting opportunity, or if skilled; catching the reversal. (not advice)
In the charts below I've used a Schiff pitchfork and fib levels
If this pump from an ascending channel can still be viewed as an extended reaction to the previous downtrend, then price should not push through the upper median line of the pitchfork. If it did and sustained price, that would show actual strength and potential breakdown of the bearish trend.
More likely, price will not pass through the upper median line and the next impulsive downtrend will arrive shortly moving in a similar manner to the previous downtrend. If price continues to pump then it could still reach the 0.618 fib ($7495) level without crossing the upper median and there is clearly plenty of time for it to cross the 0.5 fib ($7183).
Also the stochastic RSI is up at around 98. Although it is not big on detail and is a secondary indicator (due to reliance on the past), it can be quite accurate in a corrective phase with uniform price movement. When it crosses back through 80, perhaps the flood gates will open and Bitcoin will head on down to test and break through lows.
The path of least resistance seems likely to find a reversal somewhere between 0.5 and 0.618 fib.
BTCUSDSHORTS have declined significantly from ATH back similar to in April and come down to re-test the 200smma for the 3rd time since it became support.
And BTCUSDLONGS similarly had also been testing the 200smma, but passed through and turned support into resistance. It had 2 candle closes above before rejection. If price is rejected by the 200smma and longs also regress back past the previous low of 24.7K, then perhaps this potential bullish correction is over and Bitcoin will head down to complete the now rather elongated oscillation.
September has arrived. Summer is over.