in today's update we're going to focus on bitcoin's price action through the lens of its phases in the parabolic upside phase because historically we tend to see price Discovery uptrends and also Corrections and we'll be talking about 2021 2016 through the lens of these subphases and we'll be talking about which sort of phase are we in are we nearing a correction and how does that tie in with altcoin season metrics Dogecoin ethereum also coming up so subscribe to the channel for more videos like this in the future like this video if you enjoy content like
this going forward and let's dive right into it but before we dive in a quick message from our sponsor our sponsor for today's video is bit Unix and they are a really great crypto exchange for you to consider for your daily crypto trading and investing they are a no kyc no VPN Futures exchange and their liquidity is on par with the top exchanges users can trade over 250 trading pairs with up to 125x leverage without restricting and to celebrate our partnership with bit Unix we're running a very special offer from November 27th until December 7th
you can sign up using my link in the description down below and deposit usdt tether to get 20% rebate the rewards will be distributed on the very next Working Day and for more information check out the link in the description down below thank you very much bit Unix for sponsoring this episode let's dive right into the Bitcoin update here we're currently in week 5 and a half we're Midway through week five and historically in week six in 2021 we saw a 20 16% pullback in week 8 we saw an 8% pullback in week 8 in
2016 we saw a 30% pullback in week 6 to 7 we saw a tremendous 75% pullback so this isn't going to happen in this cycle but just goes to show that week six 7 in 2013 are problematic week 8 is problematic in 2016 and week 6 to8 are problematic weeks for bitcoin's Price action so seeing as we're 5 and a half weeks into the first price Discovery uptrend week six seven and 8 there is a bit of concern historically we tend to see quite a bit of pulling back in bitcoin's price action into that first
price Discovery correction sometimes we see a 16% which isn't very deep it's quite a shallow pullback but 2016 has shown us that 30% Corrections can happen and this one's a deep one in 2013 I don't think it's going to repeat but it just shows to us that week 67 can be retrace weeks and we're getting closer that time we're seeing money flow in altcoins we're seeing alt season fantastic rallies and altcoin valuations so that's great to see but we can't can't rally forever we can't just rally vertically we need a bit of a pullback because
we know that pullbacks just like this one can enable further upside 2016 is a really good a really good indicator of that price covery correction of some 30% and then fantastic upside there will be another price Discovery correction in the future but then further upside as well and so it's important to ride these waves and prepare for them it's going to be a good idea to have stable coins and cash reserves to dollar cost average into the market when we see a pullback and so really important not to be fooing into the really fantastic extraordinary
rallies that we're seeing in altcoins price action so something to really keep in mind going forward but when it comes to other assets we're seeing ethereum potentially on the CP of a breakout it got a weekly close and retest right over here quite a volatile retest like I mentioned on X Twitter this was a volatile retest and we got that picture perfect historically we've rejected from this point so that Weekly close is quite pivotal and historic because we're no longer rejecting from here like we've done over the past few two occasions over the past several
months we're actually turning this region of resistance into new support and historically this can enable further upside so turning 3,650 into support is going to enable a move into 4,000 and the reason that this is so important is because this overall 3,700 region is a new range for ethereum so if we can turn this into new support and we've seen upside wicking Beyond here in the past where ethereum wasn't really able to do that turn this level into support it could rally into 4,000 and even 4,300 because this is the range and so we could
see some consolidation here so what does this mean for allseason potentially going forward if we're able to reclaim this as support ethereum should be able to Rally to 4,300 but maybe it does reject from there we've seen reject from there in the past and if we form a range here then ethereum would be consolidating which would facilitate fantastic money flow into altcoins so there is scope for ethereum range going forward but when does that happen exactly does it happen very soon or is this going to happen in the next hype cycle really depends on how
ether positions itself this is the monthly time frame so this could still take a month or two to play out but ethereum is on the cusp of potentially breaking out it just needs to solidify this weekly close just like this to confirm a breakout and then ethereum is going to be in an uptrend we've seen Bitcoin rally quite nicely and now it might be ethereum's time ethereum's time to do that and if it's able to reclaim this level also as support then it's going to be kickstarting a rally across the range and potentially building a
new range for where it could rally to the Range High and then consolidate in a cidal manner enabling money flow into midcaps and small caps as well which is going to only add further fuel to the fire that is all season so something to keep in mind going forward but when it comes to Dogecoin Dogecoin is struggling with this resistance at around 45 cents for now not too big of a rejection here but if Bitcoin starts to pull back a bit more as part of its first price Discovery correction then one of the key levels
to focus on when it comes to Dogecoin price action is obviously going to be that last major resistance that Dogecoin wasn't able to break in 2021 but broke with ease in this cycle so old resistances tend to turn into new supports so any pullbacks into that level could be a retest attempt for Dogecoin going forward but also we have a 4mon resistance right over here across 2021 going very close into 2022 this is a 4mon resistance which we also broke really well really easily so old resistances could turn into new support So essentially these two
levels of 33 cents 34 cents really for Dogecoin and also 28 cents any dips any pullbacks into these levels that would essentially turn major resistances into new support if at all necessary because Dogecoin might not be able to give us that in this market it would need to coincide with a price Discovery correction for Bitcoin to enable a market wide pool pull back and it would be clear for each of these two levels for Dogecoin that those would be the key supports to respect going forward and when it comes to altcoin market cap it's phenomenal
how we've seen this falling wedge breakout occur we saw alen market cap turn this level into new support weekly close and retest and then here again weekly close and retest it's just been ascending level by level by level rallying all the way to very close to New time highs in this cycle at this light blue range and we've seen light blue uh levels rejections right over here in the past we've overextended Beyond here and we've also done this overextension here as well in the past we'd hang about here but we'd reject and in the previous
cycle of course we rejected into the bare Market there is scope for a bit of a rejection from here but it would be much shallower show so it just showcase to us that 425 billion isn't going to be a really strong point of rejection going forward because it's weakening as a resistance so maybe it does actually maybe provide a bit of a pullback just to indicate that this is weakening as resistance it would be a shallower pullback going forward maybe we retest these March 2024 highs once again as a new support at worst and if
we're able to do that and then challenge 425 billion once again then it would probably be a really good chance and high likelihood of breaking to new alltime highs because in every cycle altcoin market cap has simply broken to new alltime highs and prices covery every time every bull market New altcoin Market Cap alltime high and so Bitcoin dominance is going to be fueling that altcoin market cap rile to new alltime high but for the time being we've lost this technical uptrend dating to early 2023 so it's going to be retesting this 30 53% level
as support but really important to to be careful about this sort of situation where we reverse after breaking that and go back into the range because this is still a really young monthly candle so this could still end up as a wick by the end of the month to reclaim the technical uptrend line to reclaim 57% as support to essentially reclaim this macro range so lots can still happen here at the moment this is an extended altcoin window which is fantastic to see and from this level here maybe we have a little bit more left
to go and enjoy maybe even maybe even overextending that if we're looking at this sort of downside Wick here so still a few percentage points that Bitcoin dominance could drop down but of course afterwards it would be Bitcoin season especially if Bitcoin breaks out and especially if Bitcoin actually retraces into a price Discovery correction that's also when we'd see Bitcoin become a bit more dominant and so this isn't necessarily a trend line break that we can rely on longterm because this candle can still very easily reclaim this technical uptrend line and produce a downside Wick
that's going to be quite volatile we've seen downside Wicks like this in and around this region in the past and so producing a downside Wick just like this that would actually reclaim the technical uptrend so really important to take it with a grain of salt take it with a pinch of salt this technical uptrend has lost itself for the time being but it is only December 4th and we could still over the next few weeks have this Bitcoin dominance candle reclaim here so at the moment we are seeing well I was mentioning that this would
be a best case scenario for altcoins and we're getting an even better scenario for altcoins so even more so would be really fantastic but I think that would be the maximum that we can see in terms of an old season so if we're thinking about this in terms of what we've already seen then maybe we have a little bit more additional upside in altcoins and then maybe things do tie in with the Bitcoin price Discovery correction over the next week two three because week six and week eight in Bitcoin tend to be problematic for bitcoin's
Price action and the price Discovery correction and we're in week 5 and a half so something to really consider as we're already near Old alltime highs for allcoin market cap potentially need to see a bit of a shallower retrace here to Showcase that this is a weakening resistance we're potentially seeing Bitcoin dominance run out on its pullback to potentially rebound as well and how does that all tie in with that bitcoin price correction because we've seen altcoin valuations rally up so maybe Bitcoin season is going to return but not necessarily in an uptrend really interesting
to see because that price Discovery correction is looming large it'll be interesting to see how is Bitcoin going to continue to behave in terms of 100K is it going to be a resistance if it continues to be a resistance then maybe that rection takes place from 100K below but if we break Beyond 100K then maybe 100K would become a support on a potential pullback lots to consider as we navigate this Market subscribe to the channel for more videos like this in the future to stay a breast of everything going on in the crypto Market through
levelheaded analysis I'm re Capital like this video If you enjoyed content like this going forward and I'll speak to you in the next one speak to you soon
