Bitcoin Hits $38,000 and Altcoins Are Up, Bull Market is here!

Bitcoin is currently continuing the momentum towards $38,000 as the hype surrounding the spot ETF has increased, and now Ethereum is also picking up pace as a potential spot ETF for Ethereum is going to be launched. What's next? Where to find the next trade on those altcoins?

Bitcoin Hits $38,000 and Altcoins Are Up, Bull Market is here!

Written by: Michaël van de Poppe

Bitcoin is currently continuing the upwards run, as it has been running towards $38,000. The momentum has completely shifted in the markets as we're currently up-only with the sentiment and momentum. Altcoins are breaking out left and right, as we've been seeing that Chainlink reaches $16. It's just the start, but the start feels great for people suffering for the past two years in the bear market.

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In our recent update, last Friday, I've been looking at the important levels for Bitcoin, which we managed to define some important levels of interest. First of all, the level at $31,000 is crucial and needs to hold in order to prevent further downwards momentum (if any). In that aspect, the $31,000 area is comparable to what the markets have been eyeing in the 2017-2021 cycle at $6,000.

Breaking through such a resistance is vital and should see further upwards momentum, through which a dip in that region is also an area where buying isn't the wrong option. However, with that area, I don't think we'll see Bitcoin dip that much, especially with the upcoming ETF.

Most likely a dip towards $32,000-33,000 is where the bids should be placed as strong sentiment usually doesn't give the obvious retests.

On the upside, a clear monthly and weekly resistance is defined between $38,000-40,000. This level will break at some point, but currently Bitcoin's price has been providing the first test at this level. These first tests don't break at first sight, hence the correction the markets have been witnessing yesterday. Overall, the outlook is positive. Potentially, a new range is constructed in which Bitcoin's price goes sideways and that's a strong indication of further upwards momentum on altcoins.

The total market capitalization of crypto is nicely following the line here. Last week it wasn't clear whether we were going to make a higher high, but here we are. A strong, new higher high indicating that an uptrend is currently taking place, which will make trading way easier.

Overall, the projection is still that we'll be seeing more upwards momentum for the total market capitalization. I'd suspect a rally towards $1.8-2.0T isn't strange, especially with the current strength and momentum. There's new capital flowing into the cryptocurrency markets and that's also reflected in the current movements of prices across the board.

What's a likely pattern to see?

The pattern is still unchanged, in which the prices of Bitcoin are currently into a resistance zone. Perhaps we don't even have a pullback, but if we do, the levels at $32,000-33,000 are the levels to write down for potential entry points.

During late November and December, most likely we'll see more hype into the markets as the odds of a potential approval of the spot Bitcoin ETF is going to provide more momentum towards the markets, hence why the expectations are that we are likely going to see $45,000-50,000.

After that, a period of boredom and sideways price action is the next thing, in that period altcoins are going to do well, as the first 'altseason' occurs.

What about altcoins? Bitcoin dominance is currently coming down.

History is repeating itself, but there's a slight difference. In the previous cycle we've had a lower high on the Bitcoin dominance, this time a higher high was established. Primarily due to the focus of investors to Bitcoin as the spot Bitcoin ETF is taking the spotlight.

Yesterday, this changed, as the markets are providing a clear outlook for a potential spot Ethereum ETF. This spot Ethereum ETF is important as it opens up the markets for institutional investors not only for Bitcoin, but also for the remainder, hence why altcoins are probably going to rally even more.

In that aspect, we're still in the same period for altcoins, which means that this period is still a great period for buying altcoins. Let's discuss Optimism (OP), Chainlink (LINK) and Ankr (ANKR).

Optimism is facing the final resistance before a significant breakout is going to take place. Therefore, showing interest into potential dips for potential long positions before it breaks towards $2.50-3.00 is a very likely strategy.

Yesterday, a big dip has been granted for potential positions and, since then, Optimism has been following the tandem of Ethereum as Ethereum has showed a lot of strength due to the upcoming spot ETF.

In our recent update, we've been stating that the obvious retest didn't happen, but we've also mentioned a case that, if Ankr is providing a 20-40% correction, that's a must buy. Yesterday, a correction from $0.02650 to $0.0220 took place, which is close to 20%.

I hope your bids have been filled, as in the current market circumstances, these are entries. What about Chainlink? That one did run way higher than anticipated.

Chainlink did break through resistances, which I thought were going to be resistances. That's the current strength of the markets.

What's next? Buying the dips seems the gameplan, in which areas at $11.50 and $14 seems very likely for a potential long position on Chainlink.

For now, the markets are continuing to trend up, but always avoid FOMO. Make sure to use the dips to get yourself into the markets, as those are the opportunities, not when things are accelerating massively to the upside.

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