Altcoins are Approaching a Massive Q1 for Upwards Momentum!

Altcoins are trending upwards left and right after some weeks of sideways consolidation. What can we expect from them in the upcoming period? Will Bitcoin take the spotlight and run into the ETF approval or are we waiting for a long period of sideways action?

Altcoins are Approaching a Massive Q1 for Upwards Momentum!

Written by: Michaël van de Poppe

Bitcoin is currently trying to break upwards above $38,000 as we can see that the momentum has been picking up entirely with the conclusion that the SEC looks for a conclusion on the spot Bitcoin ETF applications between January 5th and 10th. That's probably also the dates we'll be seeing a short term top for Bitcoin as the momentum is going to pick up massively towards that date. What does that mean for altcoins?

Well, of course, if there's a correction taking place on the markets, we'll make sure that altcoins are going to drop as well, but after that the first 'altseason' seems likely to be happening, because the momentum is going to shift from Bitcoin towards Ethereum as Blackrock and Fidelity both have been filing for a spot Ethereum ETF as well.

This cycle is going to be glorious.

Before we continue, I'd like to thank you all for reading this Trade Letter for the past few years. In our previous blog post we've been mentioning that we're closing down the Discord as I'm personally going to focus on other segments in the company. Recently, we've launched our own consultancy and portfolio management and that's taking my personal focus and interest, as after 6.5 years I'd like to seek for a new challenge and adventure.

Hence why we've decided that we won't be continuing with the Discord and, perhaps temporarily, we'll be stopping with the Trade Letter. Don't worry, I'll be continuing to make content on YouTube and Twitter, and as time becomes free now, we're looking to create synergies to build more valuable content towards you so I'm sure you'll be seeing updates on that aspect coming from my side in the upcoming period!

What are we looking at with the current price action of Bitcoin?

Bitcoin is currently pursuing a potential breakout above a crucial level. The $38K level is marked as evident for continuation here and Bitcoin seems to be grinding above that level. Does that mean that the breakout is confirmed? No, not entirely. If it drops sub $38K, the likelihood of taking liquidity on the other side (the long side) is significant.

If such a thing happens, and you can see it in the chart already, it's going to provide some massive downwards momentum as all the stops on longs will be taken out and that is going to cause a chain reaction of stops and liquidations to be filled.

Where do we stop then? I'm not sure, I think we'll be seeing areas between $33-35K to be critical to hold. However, at this point in time (and also during such a period) it's still heavily important to buy the dip as the markets are into a positive sentiment at this point and can easily continue the momentum going forward.

The total market capitalization is still pursuing continuation here towards the new high, which is very likely to be occurring prior to the announcement of the approval/denial of the spot Bitcoin ETF. Right now, the upwards momentum is seven weeks in a row, which is tremendous and didn't happen since 2021.

That alone is a confirmation that the markets are currently trending upwards in a bull market. Additionally, the theory remains the same on this chart too. If there's a dip and a higher low established, that's an entry point for the markets to go for.

The altcoin market capitalization is on the edge of breaking out upwards and you should realize that this range has been acting for more than 500 days. If that breaks out (look at Chainlink), we'll be going to see a tremendous amount of fireworks across the board.

The fun times are slowly getting started within the cryptocurrency markets, so are the altcoin charts. If this breaks upwards, we should expect a continuation towards the levels of $1.2-1.5T on the markets to occur.

The Bitcoin dominance chart is currently aiming for continuation as we're facing a period where we're currently having some more momentum skewed towards Bitcoin.

However, as we can see from previous cycles, we've been seeing a case where the Bitcoin dominance tops out just prior to the Bitcoin halving and this time, it won't be different. If Bitcoin makes a short-term top prior to the Bitcoin halving, we can suspect that we're seeing momentum shifting towards altcoins and Ethereum through which the Bitcoin dominance is peaking.

Buying the dip is essential in the markets and the chart of Chainlink clearly shows that a correction of 20-30% is a moment to get yourself positioned into the markets. After this, the markets have been pushing up with another 15-20%.

It shows you the current momentum in the markets, which can be found across the board. Altcoins are slowly picking momentum and that will continue to be that way until the ETF is approved and Bitcoin corrects, then we'll have a swift correction and after that the markets are likely going to continue in Q1.

This cycle is the final 'easy' cycle. Make sure you're positioning yourself well and take those profits, because you need to.

Thank you very much for joining us on the ride the past years, we'll see each other soon again and make sure to check our YouTube and Twitter channels!

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