Greetings, traders & other crypto fans!
What a week, and it's not even halfway through yet! Bitcoin made a new ATH by reaching over $123k yesterday, but has been retracing since. Above $120 is a level that I'm pretty sure many were looking at as a profit-taking zone, and to be honest, it would've been stupid not to take some off the top.
I just read about an ancient whale who is doing just that, selling BTC and spooking the market. Supposedly, this individual has been dormant since the Satoshi era...but hey, we've seen that before! Nothing new.
BTC
So, what happens next with Bitcoin? In the short term?
In my opinion, we might be going down to test the $114k level and here's why.
Not sure if you noticed, but there's still a CME gap looming back there from the 25th of July. These usually get filled at some point, but the tricky part is, we don't know how quickly. Since it's already been a couple of weeks since it formed, I'm thinking many might have forgotten or ignored it amid euphoria.
But there it is, and it would seem logical if BTC were to fill it during this downward movement.
However, if you look at the chart below, we are currently at a support level that might very well hold, and we could see a bounce from here as well. On the downside, there's another support level below the CME gap(red line) near $112k(blue line), which would also be a good entry point as the bullish structure would still be very much intact.
To support my thesis of Bitcoin going lower from where we are now, let's take a look at the USDT Dominance chart.
Here we can see that the USDT.D has just bounced back up from the RSI oversold zone and is now facing some resistance. Above that, there's a long inefficiency candle which it might be looking to fill. At that level, I'd be looking for a rejection. This scenario would align well with the CME gap play and would offer an opportunity to go long on Bitcoin.
Looking For Strong Alts
Interestingly enough, even though BTC fell over 5% from yesterday's ATH, altcoins haven't suffered that muchand by that I mean getting totally annihilated like we've seen many times before. At least not yet.
Bitcoin dips like these are great opportunities to search for altcoins that show strength against Bitcoin, as when it's time to go back up again, these ones usually do well in an uptrend.
Here's how I do my research on that:
I go to Banter Bubbles to get a quick look at the top 100 assets.
Here we see only a couple of ones in green: $BONK, $PUMP and $CRV. However, when we change the currency in settings to 'BTC', we can see way more green as the same tokens are compared to BTC instead of $.
$SUI, for example, is up 5% and has held up very well after a big pump. My next step is going to Crypto Rank to see how the tokens on my watchlist are doing.
Here I can also see $SUI outperforming BTC and two other Sui ecosystem tokens, $WAL & $DEEP, are performing well too.
Besides SUI, $HYPE is holding up relatively well while $SOL is down a bit more and looks like ranging again.
Therefore, I'm looking into adding to SUI & HYPE if the situation remains like this and they still stay strong even if BTC goes down to fill that CME gap at $114k.
Conclusion
Interesting rest of the week ahead of us! I still remain very bullish in the long run and think we might see some crazy prices byt the end of year. Until then, I consider every dip as an opportunity to add to strong positions. Also, always taking some profit during the pumps.
Thank you for reading!
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