Bitcoin Hits Our Target Zone. What Happens Next?

Bitcoin has reached our support and target area this week and therefore the road map is currently being followed perfectly. In this video, we want to take a look at the Bitcoin chart on the daily on the shorter time frame and we also want to take a look at USDT and Bitcoin dominance to see what it could mean for the broader sector and the altcoin sector. We start here on the daily chart and I mean this zone has been on the chart for many many weeks. 63,326 to 74,84. I told you I'm going to buy in this area. So, this is my buy zone. Um, of course, I keep it small as long as we are still dipping without a confirmation for a low. There was a video a few days ago where I talked about how exactly uh I plan to buy. And so, nothing has been change. Nothing nothing's changed there. The descending line here that you see, the white line is the 50Week SMA. At the moment, we have not really broken into this support zone yet. We only touched it, but we touched it perfectly. I mean, you see it. I mean, really perfectly. Um, and so that's the 38.2 retracement. Look, from an Elliot wave point of view, we we treat this correction as a complex correction, a WXY structure. Um however we don't need to keep it so you know we don't need to make it complex. Okay so we have a few important levels here that I would pay attention to over the weekend but also over the yeah let's just say over the next let's say couple of weeks or so. So first of all to determine where things could be going we use Fibonacci levels. So you've got 74,800 for a so-called Bwave or wave 2 correction. That's however quite a weak support level. It's quite, you know, it just means that it's a weak correction. It's okay, you know, it's it's deep enough, but it's not really a, let's say, a healthy wave B or a wave two. Um, then we've got obviously here the 50we SMA. We've been talking about that for many, many weeks. Now, we're retesting it from above. And so, that's key support. And I mean we would first need really a break below the 50WE SMA here around 75 and a halfK together with the previous swing low uh to really move into this support zone. Now for context, Solana is already here somewhere and our target area for Solana is also in this area in the middle of this larger box. Bitcoin isn't there yet. So keep that in mind, please. Um, then we've got 71,252 to 67,868. That's normally called like an ideal support for a wave B or a wave 2. We're not there yet. And the the lowest relevant support I can offer is 63,326. Of course, there are, you know, there's the 88.7 fib level below, but it it is deeper than what we normally want in a wave two. Yeah, a Bwave can be deep, but to be honest, if I'm looking at the daily RSI, >> [snorts] >> uh, we already I mean, we're not oversold yet, but we're getting close. Okay. And [snorts] historically, when you look at all these swing lows that formed where the RSI was oversold, I mean, that can be an opportunity. I'm watching that either way. I mean, you've got the levels and then you've got the indicator and it's so simple. The RSI is so simple, but many people just don't use it because they think it's too simple, right? They think it's too simple. who's we need we need this and that and whatever and onchain and yeah I mean we do all that as well but keep it simple sometimes um especially the relative strength index is something that and you guys know that many of you have been following here for years and we are a great community and you know that whenever the daily RSI is oversold I'm not saying that we go to new highs every every time that happens but it's usually a decent bounce just look at this example June Yeah. So that the June June lows there was an oversold reading bullish divergence breakout. Then we had here in February 26 oversold we expected a rally based on that. It happened. Then here November 25 we also expected a rally based on that. Not necessarily new highs but we expected a rally. It always happened. Um here April 25 we also had a bullish divergence. Great. So that means just when we are seeing that it doesn't mean it has to be the low but usually a zone it is a zone where a low forms. Okay. By the way here was also the 50we SMA that provided support. Again 50week SMA and oversold reading provided support there as well. I mean it's just I could just go back. I made a video. It was it's already like a one or two years ago, but it was like nine of 10 cases. It worked like you know it's it's great. It's it's just a great indicator. It's so simple and you don't need to use the fanciest one. This one will do it together with Elliot wave. Unbeatable. Unbeatable. Um on the daily chart, okay, I'm not talking here about the 1 hour and the 4 hour, whatever. This is the daily chart. At some point it will probably stop working, but this is great. So that's what I'm watching in this correction. Um, at the moment, no sign that a low is in. So in line with expectations, we should still go a little bit lower. Um, as first resistances, of course, I'm using the yellow trend line. Can we actually draw a tren a channel? Can we actually draw a channel here? Not really. It's not It's not a It's not a It's not a really good channel. Uh, so I only use the yellow line as resistance. And then we've got the green line here as well, 81,238. And these lines aren't made up. I mean, this line was on the chart already, I think last week and this week. Price rallied to it after the midterms, got rejected, and moved back to support. So, we're just moving in the range. Okay. And just before we go to the smaller time frame, just one more thing. When you see a rapid move like that after the midterms or on Fed day or CPI day, don't take it too seriously. I always warn about that. It's short-term volatility. And so you see why, right? You see why. Now, let's also take a look at the smaller time frame cryptos on a CFTC regulated US exchange. That is new. And this segment is sponsored by KCHI. Kali lists perpetual futures on Bitcoin, Ethereum, and more. No expiry. You trade up or down with a multiplier of up to 6x. And the multiplier works both ways on gains and on losses. Approved US customers only, not in the UK or EU. If that is you, sign up for KHI with our link in the description. And this is the Bitcoin short-term chart. You can see here how the market could be setting up for lower prices. [clears throat] So you see we have a fivewave decline into the Friday low, but the price is not breaking yet below the red line. It's not breaking yet below the 50we SMA. So those are still holding. Resistance for the weekend is between 77,118 and 79,578. very very important zone at least on the micro here. Um, in the grand scheme of things, it doesn't have much much meaning, but in on the shorter time frame, it has because if this is a one-two setup to the downside that setting up for lower prices, price should ideally uh stay below 79,578, a break above it could lead to a test of those structural resistances we talked above. And then, yeah, I mean, if we see maybe a weak bounce or sideways over the weekend and then a sharp decline, that could be our third wave down. that could take us into the middle of this support area. Um, by the way, what we also wanted to to take a look at is is the VRVP, the volume profiles. Um, not quite sure if we see them on this chart. Yeah, we see them because at the moment we are kind of in this area or below this area even where there was this this kind of confluence, this spike, okay, around 77,300. Then throughout the Fibonacci support area, there isn't much there. Okay, there isn't much there, but there is the point of control is down here. So, even if we get a really deep pullback, there's kind of one last chance around the 78.6 fib level and this volume profile cluster for the market to find support. So, I would always pay attention to the volume profiles and the point of control. So, I also promised you we'll take a look at the Bitcoin dominance chart. find that very important because a lot of nervousness around altcoins and I'm a huge fan of keeping it simple. So what's the situation right now? We're in a range. Bitcoin dominance is in a range which means you don't really have the broad altcoin rally. It remains difficult for altcoins as long as we're moving sideways here on Bitcoin dominance. Now I shouldn't say that because when we're moving sideways it will depend on Bitcoin and USDT dominance. with Bitcoin. If Bitcoin is in a correction and Bitcoin dominance is going sideways, well, they are going down as well, right? It's so simple. And so my view is even if you have a bullish, let's say, altcoin setup maybe, you know, and then altcoin is currently testing support, but Bitcoin is still going lower because it's leading the way, of course. Yeah, it's the boss. Um, and Bitcoin dominance is going sideways, guys. What do you expect? Bitcoin, Bitcoin is dragging them lower, right? This might only be different in a period where we see a decline and maybe even a complete breakdown. So, I just show you this because it's so important for context. You can't ignore Bitcoin dominance. You shouldn't. Okay? So, always keep that in mind when you look at individual altcoin charts or setups or structures. When Bitcoin corrects, it will drag them down, especially in a in a in a sideways range. Bitcoin dominance. If Bitcoin dominance goes up, even more difficult for altcoins. If Bitcoin dominance goes down, more favorable. So, the ideal situation is, of course, you have a bullish setup on an altcoin. Bitcoin is going up. Perfect. Better. Bitcoin is going up, bullish setup on an altcoin, and Bitcoin dominance is even going down at the same time. But at the moment we are not in a situation where it's very easy to trade altcoins or where you know where where the situation is very favorable. USDT dominance is also important because we have this bounce that we expected. I don't show it very often in the videos but I show it still sometimes. And we had this bounce from the yellow trend line and we're moving towards resistance and in a period where USDT dominance is going up. This is where funds are flowing out of cryptos into altco into into stable coins in this case USDT. And so also this is not a situation where we expect rallies. Okay. So it's important to understand also the individual altcoin charts, Bitcoin's chart in this context. This fits so well my Bitcoin chart because it shows that we could move into resistance next. Yeah, while Bitcoin is in support and there's still some room, so we could still go a little higher. But as long as USDT do is going up, don't expect huge breakouts on altcoins. It's it's so simple, actually. Okay. But a lot of people ignore that one. A lot of people ignore that one. I wouldn't. So, I show you that as well. Um, you have access to my live chats, by the way, also in the in the membership if you join via mccogal.com. Okay. Hey, I mean that gives you a good overview, I hope, for the weekend and the next week. I mean, in the next video, I want to I want to make a a major indicator video showing you different indicators for Bitcoin that that kind of support or maybe even challenge my view. I'm always unbiased. So, I'm always happy for the technicals to challenge my view as well. And I want to make a major indicator video covering different indicators including super trend. And we'll see how it goes. So, hope it was helpful. Make sure you subscribe to the channel, guys. If you're interested in more updates, altcoin updates, you find this all on our website, mccoglobal.com. Thanks so much. Bye-bye.