The markets created a huge wave of FOMO in the past couple of days, which attracted massive buying volume. As BTC dominance surged above 52%, the token attracted half of the volume, and as a result, the price smashed beyond $35,000. Nevertheless, the traders who bought in FOMO, appear to be ‘panic selling’ today.
Despite this, the altcoin season index continued to remain at the same level as it was in 2019-2020. This was the time when a strong foundation was laid for 100x gains, and hence a similar bullish pattern has just flashed.
Above is the weekly USDT dominance chart along with the 50-day EMA indicator. Whenever the dominance has plunged below the indicator, a strong Altseason has kicked off. A similar pattern was witnessed back in 2021 when the altcoins underwent a 20x to 50x gain. Now that it has happened again, a similar price action is again expected. With this, the possibility of the Bitcoin (BTC) price rising above the current ATH and forming a new one emerges.
After consolidating for an extended period, the bitcoin price is closer to recording one of the highest monthly closes for the first time since February 2021. While the long-term projections are bullish, a breakout in the short term is closer to being validated. In the short term, the BTC price has formed a bull flag and is about to trigger a fine breakout.
Once the tokens breakout from the bullish pennant, the price is believed to rise firmly to hit the higher target of $38,000. This may further pave the way for the price to surge above $40,000 in the next few weeks and eventually hit $50,000 in the first fortnight of November. This could attract huge liquidity from the investors, as they could have become more optimistic about the upcoming trend. Similar to 2021, the markets may trigger a strong bull run in 2024 but could refrain from reaching $100K in 2024.
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