Bitcoin’s recent price action is showing signs of a slow correction after pushing to a new local high at $69,487. While the pullback may seem concerning to some, these types of corrections are healthy and necessary for a strong, sustained trend. With Bitcoin still firmly within bullish territory, the focus is on the next move as the market continues to digest this momentum.
Bitcoin’s Slow Pullback: Healthy Consolidation
Bitcoin’s price has started to drag lower, but this correction aligns with expectations. My target remains the previously broken resistance line just above $65,000, which now serves as support. We’re also keeping an eye on the TBO Fast Line on the daily time frame as a potential bounce point.
Although I prefer to chart using the daily and weekly time frames, faster time frames like the 4-hour can provide early reversal signals. Notably, we’ve seen a TBT Bearish Divergence cluster at $69K and two TBO Close Longs, followed by a Cross Down signal, suggesting that bearish consolidation is likely to continue in the short term.
One key observation is the importance of Fibonacci retracements and extension lines. The previous all-time high at $69,000 is acting as strong resistance, and on the 4-hour chart, the 3.0 Fibonacci extension from 2014 is also being respected. These levels are critical, as they often serve as psychological and technical points where the market pauses or reverses.
The Bigger Picture: Patience Pays
Despite the short-term correction, Bitcoin’s long-term outlook remains bullish. Pullbacks like this one are healthy and provide opportunities for new entries. As I’ve mentioned before, we should expect corrections, and they shouldn’t be feared. In fact, these resets help the market gain strength for future moves higher.
Daily RSI has dipped below 70, signaling that Bitcoin is cooling off after being overbought. This isn’t a cause for concern, as these pullbacks offer a chance for the market to catch its breath before resuming its upward trend. The weekly chart remains strong, with weekly RSI still climbing and On-Balance Volume (OBV) trending above its moving average—a great sign for long-term bullish momentum.
Additionally, Bitcoin is still well above the weekly TBO Cloud, confirming a strong bullish trend on the higher time frames. While there is resistance at $70,167, this will likely become a target for the next bull run rather than a barrier to future gains.
What About Altcoins?
For now, it’s still Bitcoin season, and altcoins are likely to underperform in comparison. OTHERS.D, which tracks the performance of altcoins, is showing some signs of life but remains below the weekly TBO Cloud. This suggests that while there may be brief rallies, altcoins are not yet ready for a sustained breakout.
However, the picture is slowly changing. By mid-December, we may start to see a more significant shift in altcoin performance as Bitcoin’s dominance wanes. Until then, it would be wise to avoid over-allocating to altcoins and wait for clearer signs of strength.
Total Market Cap Charts: The Bigger Picture
Looking at the TOTAL charts, which track the market cap of various segments of the crypto market, we can see mixed signals. The overall market cap (TOTAL) is still bullish, with price action above the TBO Cloud, but it’s encountering resistance.
TOTAL2 (everything minus Bitcoin) is consolidating bullishly but is still struggling, reflecting the underperformance of the top 10 cryptocurrencies excluding Bitcoin.
TOTAL3 (everything minus Bitcoin and Ethereum) is also in a bullish phase, though it’s currently in transition. This chart reflects the performance of the top 10-30 market cap coins, many of which are looking more bullish but haven’t yet fully broken out.
Lastly, the OTHERS chart, which tracks mid-to-low cap altcoins, shows price action above the daily TBO Cloud, indicating a bullish trend. However, On-Balance Volume tells us that there isn’t strong buying interest yet. This suggests that low-cap altcoins are still waiting for their moment, which will likely come once Bitcoin’s dominance fades.
Stay Patient and Focused on Bitcoin
While Bitcoin is experiencing a healthy pullback, the overall trend remains bullish. Patience is key during these phases, as they provide opportunities to re-enter the market at more favorable prices. Dominance levels show that Bitcoin is still in control, and it’s likely to remain the leading force in the market through the fourth quarter.
Altcoins will have their time, but for now, Bitcoin is the main focus. As we approach the end of the year, we can begin to look more closely at altcoins for potential rallies. For now, though, the best strategy is to stay patient, keep an eye on key support levels, and prepare for the next leg up in Bitcoin’s ongoing bull run.
