A crypto strategist who weathered Bitcoin’s (BTC) pre-halving correction earlier this year says altcoins are likely to tear up once this large-cap coin takes center stage.
Pseudonymous analyst Rekt Capital tells his 517,800 followers on the social media platform
“A ETH outbreak would lead to the next wave of altcoin rallies.”
Looking at Ethereum, the trader says ETH is very close to a breakout on a high time frame.
“Ethereum is now pushing past the ~$3,700 resistance of its main pattern (light blue). A weekly close above the pattern top would trigger a breakout and end the 2024 ETH downtrend.”
Ethereum has closed the last weekly candle above $3,700.
At the time of writing, Ethereum is trading at $3,731.
Late last month, Rekt said that a rise in Ethereum above $3,100 would trigger a capital rotation from Bitcoin to ETH. He also shared a chart suggesting that capital would eventually shift from ETH to mid-cap and then to lower-cap coins.
“A weekly close above the blue diagonal resistance ($3,100) would likely trigger a new wave in the money flow cycle as ETH would take control of the money flow of major companies.”
As for Bitcoin, Rekt says the crypto king needs to rally above its immediate resistance to spark an upside burst towards the six-figure level.
“Bitcoin is now trying to get past the bull flag top.
A daily close above the bull flag resistance at ~$97,450 could trigger further trend continuation to move closer to the $100,000 challenge again.”
At the time of writing, Bitcoin is trading at $97,891.
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Generated image: DALLE3