Bitcoin [BTC]: Time Is Running Out For Crypto!

Michael Pizzino

Market Analysis

The CPI figures have led to increased prices across most assets, potentially kickstarting the fifth and final leg of the bull market in crypto.

  • The core CPI month-over-month figure was 0.2% versus the forecast of 0.3%.
  • Daily exchange volume is holding at around $85 billion, which is a positive sign, but ideally, it should be above $95 billion for a stronger rally.
  • Liquidations are at a healthy $300 million, with no indication of a pivot point top.

Bitcoin Analysis

  • Bitcoin is close to breaching the overhead trend line above $100,000.
  • The price action holding above the 50% level and previous sell zones is a bullish signal.
  • The market structure suggests a potential fifth and final leg in the bull market, broken down into a five-wave section.
  • Confirmation of a daily high and low above the current level is needed to solidify the bullish trend.

Total Market Cap Analysis

  • The total market cap is also close to breaking the trend line from the all-time high.
  • Multiple layers of confirmation, including volume signals, are needed for sustainable moves.
  • The daily exchange volume breaking some resistance areas, ideally above $95 billion, is crucial.

Alt Coin Analysis

  • Ethereum: Needs to get back up to the breakout zone (50% level and trend line) and hold above $3,500-$3,600 for a stronger position.
  • Solana: Has more work to do, needing to get back on top of the relative trend line and 50% level (around $220) and hold to confirm a bottom.

Conclusion

The trends are currently in favor of the bulls, but it's essential to consider invalidation levels and potential false breaks. A couple more days are needed to confirm the signal for a major low, setting crypto up for the final leg in the bull market.