finbold.com
Bitcoin (BTC) started moving, breaking out of a seven-month downtrend, and indicators suggest the 2024 crypto bull market is back. In this context, a trader highlighted key chart levels to watch while building altcoin positions for the “upcoming bull run.”
According to M3zee, traders should carefully look at the Bitcoin Dominance (BTC.D) index chart on TradingView to build positions. In his analysis, M3zee highlights three BTC.D levels that could make a good partial entry point in solid altcoins.
“Alright, listen, it’s pretty straightforward. From the chart in front of you, it’s clear that Bitcoin’s dominance is on the rise. We’re currently heading toward a weekly downtrend. The plan is (…)”
– M3zee on TradingView
The trader’s three ideal entry levels from Bitcoin to altcoins
Essentially, the trader will split his deployable capital into three shares, making three entries according to the BTC.D index.
Despite not making it clear whether the deployable capital is in Bitcoin or the dollar, it is implicit that the trader means entry points from BTC to altcoins, considering he is analyzing Bitcoin’s domination chart. This would be the market’s usual behavior, looking for an overperformance of the latter during an expected altseason.
First, M3zee suggests traders buy 33% of the position once the BTC.D makes a 1-week close above the weekly downtrend. He claimed to have been watching some altcoins since 2022 and says this will mark his first ALTCOIN/BTC move.
The second move will happen when BTC.D reaches the resistance at 64.7% or when the upward pattern breaks. This second entry considers the possibility of Bitcoin dominance never reaching the resistance, reverting to a downtrend before this level.
Finally, the remaining 33% position is planned for after “a retest of the broken area,” in the trader’s words. Interestingly, M3zee also says that the best time to exit the positions is when BTC.D touches the ascending weekly trend line, around 43%.
Bitcoin breakout, crypto bull run, and the altseason
What the trader described in his analyses is a typical behavior the market experienced in past cycles.
In particular, Bitcoin is expected to reach new highs after breaking out of an accumulation zone – or a downtrend. We have many signs that suggest BTC could be doing that right now, as Finbold reported today. Technical indicators favor the “Uptober” narrative, indicating the 2024 crypto bull market is back.
Then, Bitcoin traders are expected to swap their gains into cryptocurrencies with higher growth potential – the altcoins. This phenomenon usually ignites what some traders call an altseason, with low- and mid-cap crypto outperforming the leaders.
According to Ali Martinez, as we previously reported, an altcoin season is “just around the corner,” with promising results. Martinez is also monitoring the BTC.D chart, which, in his opinion, shows weakness and signals the upcoming bull run.
On the other hand, expert Toby Cunningham warns that the breakout movement will come as a huge surprise.
The move that will break us out of this range will be fast and violent. It will also happen when most people are depressed about the price.
— Toby Cunningham (@sircryptotips) October 15, 2024
Think about March 2020. This is a perfect example of Bitcoin plummeting then reversing from $3500 to $69K. Most were caught off guard.
This is a theory that big moves usually happen in the opposing direction expected by the retail trader’s crowd. It is also a welcomed reminder of how cryptocurrencies can be highly volatile and unpredictable, requiring caution.