Bitcoin’s recent sideways action has given us some time to reflect upon the movements of the past few days and project where we might go from here. What we’re seeing on a macro scale is a continuation of the positive trend that we have been seeing for Bitcoin all year. Bitcoin was able to close a few different daily candles above our drawn resistance, as you can see below:
On this daily chart, we can see that Bitcoin appears to have been forming a bull flag to continue its upward trend. At this moment in time, we would project that Bitcoin rides the support that it has currently established above the upper resistance of the bull flag while altcoins recover from brutal stretches.
While Bitcoin has been enjoying relative success over the past few months, altcoins have not been experiencing the same thing at all. This week many altcoins marched once again to new all-time lows and the altcoin market as a whole remains very unhealthy. Luckily, we think that Bitcoin’s progress and subsequent sideways movement provides for the perfect opportunity for many altcoins to gain some ground back and restore some of their former value.
At the moment, all eyes are on altcoins. But if BTC beings to move again, we’ll be looking for it to hold that support in the top line of the bull flag that we depict above.