Welcome to an another analysis.
This time we will look at the weekly log chart from ETH / BTC.
Alt season incoming?
The BTC dominance is decreasing and the alts are gaining momentum. The Star of the Alts (ETH) is also gaining more and more in comparison to BTC. In recent years, the ETH / BTC pair has also been a good indicator for the start of an altcoin season. However, let's take a look at the chart first.
As you can see, the ETH / BTC pair is currently forming a potential inverted head and shoulders pattern. This is the bullish opponent of the normal head and shoulders pattern. The neckline is represented by the purple line, if it breaks I expect a very strong increase up to resistance 2 or a little more. In addition, ETH ended a 3-year “bear market” in comparison to BTC and recently broke the resistance line of the downtrend. However, it is currently struggling with resistance 1, which i hope to be broken soon .But if the Bitcoin dominance increases, ETH could possibly test the downtrend line again.
Should the ETH / BTC pair maintain the bullish momentum, I think that we could quickly reach resistance 2. Whereby all the other alts should pull along. Which is why I assume that the altcoins will have strong gains after resistance 1 has been broken. Whereby their market cap looks also very bullish. If we manage to maintain the dynamics after resistance 2, it could increase to resistance 3. If so, it could be a very intense altcoin season.
Mind you, everything is a bit shaky at the moment, but corrections in a bull market are part of it and are healthy for a sustainable increase.
Sincerely yours, Captain Rex
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! Constructive criticism is always welcome!
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! Important disclaimer!
Not an investment advice, just my personal opinion/idea