Whilst we expect to see Bitcoin trailing higher once it’s ready to sustain consistent buying volume and reduced selling beyond the current $102K Resistance zone, given that historically in the first half of a Bulllrun we usually see Bitcoin lead the charge, it’s the second half of a Bullrun where BTC dominance starts to fall off, giving way to the meteoric rise of Altcoins, like we saw in cycles past. As is true for all trading opportunities, this can even be charted and critiqued using Trend Analysis and our understanding of Price Action to determine where a likely trend reversal will come in, paving the way for Alts to reign supreme again. Currently, BTC dominance has remained consistently in an uptrend since the beginning of 2023, in-line with the beginnings of a bottom forming from the FTX crash in Q4 2022.

If this was the case (which is a pretty optimistic one, we might not go that low), it likely means we close out of the month of December with a red month, although as mentioned above if we can get a nice long bottoming wick due to buyers swooping in and buying the dip, we could start moving back upwards rather quickly at these levels which are perceived as a relative “good deal”; this would consequently set us up very bullishly leading into the New Year for 2025 and beyond. 

In this liquidation slide-styled correction, even if we wick through the $96,490 level pretty hard, as long as we close daily trend around or above this price, it makes for a fantastic opportunity to add to our holdings so that we can get the last few entries in before the real mania begins. At that point, because we have closed the daily candles and weekly candles holding trend despite the hard sell-off, a strong reversal will likely come in eventually spurring on substantial buying volume followed by even more green on the charts until we fully melt up and blow out ultimately closing out this approximate four-year market cycle. In either scenario, as long as we’re holding the broader structural trend we’ve made up – we’re clear to keep printing higher from here in the coming weeks and months ahead. 

In our previous articles we’ve also given credence to how an “Alt Season” may play out, meaning when Bitcoin starts to become the less dominant coin in the market and the alternative Cryptocurrencies that aren’t bitcoin start to gain significant momentum and, in some cases, even outperform BTC by the end of the Bull run. Let’s take a look at what Bitcoin’s younger brother and second largest Cryptocurrency is doing.

Ethereum is well positioned to take advantage of this upcoming “Alt season” and has shown all the technical signs it’s needed to in order to demonstrate it’s not only undervalued currently, but soon to play catch-up with the rest of the market. Historically, Bitcoin is the first major Cryptocurrency to breach new All Time High’s when a Bull run kicks off, becoming the leader that points the way for all other Cryptocurrencies to follow suit once deeper into the Bullish cycle. This is usually true up until the point of a significant “Mid-Cycle Correction” of which I believe we’re potentially in the midst of as writing this. Right now, we’re also getting a sell-off in ETH as its value is closely correlated to BTC at this stage of the cycle, however once we recover out of this, I suspect that the retail mania will ramp up to higher levels of speculation, therefore paving the way for the broader Alt Coin market to melt up even further which will position ETH as an attractive yet currently undervalued-conservative way to gain exposure to this upcoming Alt Season. 

The Price Action leading up to this correction has been trending really nicely, in fact ETH has done a similar “Bull Flag” Pattern, of which we successfully predicted on BTC earlier this year. ETH broke out of its Bull Flag post-Trump Election win, pumping from it’s major support which held since early August between the 0.618% and 0.702% Fib levels, equating to lowest point held at $2,131.22 in this zone of psychological support.

As you can see, also using Fibonacci extensions in order to ascertain where the first target might be once above the All-Time High, it’d likely land us at $7,475.60 where the 1.618% psychological level resides, similarly to how we predicted the $102,000 first target on bitcoin with a high degree accuracy, of which it just reached and pulled back from this month. 

As we correct in price here, it’s an excellent opportunity to take a look back at the absolutely stellar year we’ve already had, allowing us to achieve what was once considered impossible; a Six Figure dollar value on merely a single Bitcoin – but it’s not over yet! The most ludicrous part of this market cycle is still to come, although to maximise opportunity, we need to stay vigilant with how this correction plays out over the course of January into early 2025, because if we hold these levels here, despite the bottoming wick volatility and some daily timeframe selling and follow-through to the downside – once we zoom out in larger timeframes it’s clear to see that this is a healthy correction in the grand scheme of things, rather, I’d say it’s a blessing in disguise to veteran market participants. In further articles that are to come over the following months, we will also look at how to chart ETH relative to BTC price, as opposed to USD in order to get an even more in-depth look in how we can capitalise off this incoming Alt Season accurately using historical data and manage risk while we’re melting up in a deluge of retail (and possibly institutional this time around too!) mania.  Allow us here at Stormrake to guide you through the noise and catch the hidden gems of the market in order to achieve your bounty this cycle and beyond!