Bitcoin's Continued Strength
Craig Cobb, of the Gromeco, breaks down the state of the crypto market as Bitcoin flirts with the critical $100,000 level. Let’s dive into his detailed analysis:
Bitcoin’s Current Trend
Weekly Momentum: Bitcoin has seen successive weekly gains: 17%, 11.75%, and 9% in the past three weeks. However, the pace is gradually easing. While this slowdown may concern some, it points to sustained, methodical buying rather than a euphoric spike.
Overextended Weekly Averages: Cobb notes that Bitcoin is moving away from its weekly moving averages. Historically, this signals a likelihood of a pullback into the “cradle zone” before another leg up. Yet, this doesn’t guarantee an immediate reversal.
Daily Timeframe: The daily chart shows controlled movement, with Bitcoin holding well above $90,000. Cobb highlights that the next deep pullback could test $90,000, but no signs of weakness have emerged yet.
The $100,000 Psychological Barrier
Resistance Expectation: $100,000 acts as a psychological milestone where traders might place significant sell orders. Breaking this level could lead to a “discovery mode,” where Bitcoin explores uncharted price territory.
Potential Price Action: If Bitcoin breaks through, it may retest the $100,000 mark as support, providing further trading opportunities.
Altcoin Movements and Total Market Cap
Bitcoin Dominance: Bitcoin dominance hit 61.5% last week but faced a pullback, now resting in its "cradle zone." Cobb predicts a rebound, possibly driving dominance toward 70%, a typical bull market peak.
Altcoin Runs: While Bitcoin consolidates, altcoins like IOTA and Enjin have seen explosive gains. Cobb points to his successful trades:
IOTA: Yielded a 6x risk/reward multiple.
Enjin (ENJ): Returned a 7.27x risk/reward multiple.
Looking Ahead
Path to $100K: A decisive move above $100,000 could trigger a fresh wave of bullish momentum. However, traders should watch for potential resistance before the price clears this significant milestone.
Altcoin Cycles: As Bitcoin’s dominance rises toward 70%, the focus may shift back to Bitcoin before the altcoin market experiences its usual post-peak rally.
Key Takeaways
Bull Market Trend: Bitcoin remains in a strong uptrend across daily, weekly, and monthly charts.
Watch Levels: Keep an eye on $90,000 (pullback) and $100,000 (breakout and support test).
Altcoin Opportunities: With Bitcoin holding steady, select altcoins are outperforming and offering lucrative trading opportunities.
Craig Cobb’s Final Thoughts:
“It’s an exciting time to be in crypto. The market is behaving in a textbook bull cycle manner. While pullbacks are expected, the overall trend remains bullish, and $100,000 is the next big test. Let’s see how the market handles it.”
To stay updated with Craig Cobb’s analysis, follow him on X (@TraderCobb) or visit The Gromeco.
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