Taking a look at the 4-hour BTC chart, you can see the journey Bitcoin has taken since its lows in December. Since that time, it has been primarily the BTC party as Bitcoin has gained 3x in 6-7 months. However, that party is slowly coming to an end and the alt coins, which are at all-time lows, are starting to show signs of life and start a party of their own. I think this will be where the real money is made.
Head and Shoulders (light blue)
A lot of traders have seen this pattern forming. It's actually a head and shoulders within a head and shoulders. Huge bearish divergence can be seen on the MACD. I think BTC will test the neckline around $6800-7000 and have a weaker bounce forming the right shoulder. With a ~$2400 head height, I get a target price of around $5,500, which would take us back to the uptrend that started this whole run. It would also hit the .618 Fib retracement mark. I think this would be a healthy correction from the May high and would be a great spot for the bulls to take control again.
Alt Party
I think we may have a similar situation to the bull run of 2017 on our hands here. Several months of Bitcoin growth, followed by one crazy month of alts. With many alt coins at all-time lows and Bitcoin dominance so high, the prices are just too attractive for Bitcoin holders to resist. BTC will flow to the alts giving them life and we could see some serious gains in the alt coins. I think this window will be during the formation of the right shoulder.
So overall, I think BTC is due to fall to the neckline very soon. A bounce here will confirm support and then I will be watching for the right shoulder to form. During this time, I will be searching for alt coins that look ready to pop. If you have any favorites you like, post them below so we can all get in on the party!
Head and Shoulders (light blue)
A lot of traders have seen this pattern forming. It's actually a head and shoulders within a head and shoulders. Huge bearish divergence can be seen on the MACD. I think BTC will test the neckline around $6800-7000 and have a weaker bounce forming the right shoulder. With a ~$2400 head height, I get a target price of around $5,500, which would take us back to the uptrend that started this whole run. It would also hit the .618 Fib retracement mark. I think this would be a healthy correction from the May high and would be a great spot for the bulls to take control again.
Alt Party
I think we may have a similar situation to the bull run of 2017 on our hands here. Several months of Bitcoin growth, followed by one crazy month of alts. With many alt coins at all-time lows and Bitcoin dominance so high, the prices are just too attractive for Bitcoin holders to resist. BTC will flow to the alts giving them life and we could see some serious gains in the alt coins. I think this window will be during the formation of the right shoulder.
So overall, I think BTC is due to fall to the neckline very soon. A bounce here will confirm support and then I will be watching for the right shoulder to form. During this time, I will be searching for alt coins that look ready to pop. If you have any favorites you like, post them below so we can all get in on the party!