Bitcoin weekly: Breakout to new ATH
The past week, the doom-and-gloom of the week before turned into renewed hope as bitcoin rallied up to new all time highs. Bitcoin put in an all time high weekly close at $123.5k, continuing its move up towards the price target of $142k. LFG!
Also watch the accompanying chart analysis on YouTube.
The week before last, the sentiment was awful all around the cryptosphere, as bitcoin et al all sold off heavily, liquidating traders to the tune of billions of dollars. My take in last week’s update was that it was an over-reaction though, and I had this to say:
These two facts make this dump look like a temporary correction, caused by market makers flushing out leveraged positions. > > If this assessment is correct, crypto markets should turn up again within the next couple of weeks. So let’s keep watching.
And yes, that turned out to be the correct take: after rallying throughout the week, bitcoin put in a new ATH on Sunday morning, and then ended up closing the week at $123.5k, a new weekly high. Ideally I would have wanted it to close a liiittle higher. But there is no reason to doubt bitcoin’s strength here.
There is of course still the slight chance that this breakout will turn out to be a fake-out, leading to a new dump. But this is very much not the main scenario right now. Bitcoin breaking out into new highs is extremely bullish. Period. It can now continue towards the price target of $142k. Remember that I first set this target all the way back on July 13th, and I have maintained it every single week since then.
Also note that all along I’ve said that this is a conservative price target. Bitcoin will likely end up going even higher before this cycle is over.
Meanwhile, bitcoin dominance continued to bounce. But the trend is still clearly down, meaning altseason is still ongoing. If history repeats, BTC will now keep going up, followed by a continuation of the big cap alts like ETH, SOL, and BNB. Then the smaller cap alts will get their time to shine, towards the end of altseason, leading up to the cycle top.
LFG!
