The past week has been nothing short of extraordinary for crypto holders. If you’re keeping an eye on the charts and the news, it feels like we’re witnessing the catalyst we’ve been waiting for. The past five days showcased strong technical signs, both on Bitcoin and altcoins, suggesting we could be on the brink of a historic market move. While volatility will likely create dips along the way, the next 12 months could shape up to be incredibly exciting for those who are prepared.
1. Bitcoin Dominance and Altcoin Season Timing
Bitcoin dominance has been testing significant resistance areas, with levels reminiscent of previous cycle setups for altcoin season. Historically, when Bitcoin reaches these heights on the dominance chart, it’s a signal that altcoins could soon shine. Last cycle, it was around this exact period that we saw altcoins begin a powerful rally as Bitcoin dominance eased. While we might still be about 30 days out from the full momentum, the pieces are aligning
2. Multi-Year Technical Patterns Confirm a Bullish Outlook
On the technical side, Bitcoin has been performing impressively on both daily and weekly charts. We’re seeing the formation of a massive inverse head and shoulders pattern—a multi-year setup that suggests a major move is imminent. Historically, this type of setup signals a potential breakout, with price targets stretching as high as $130,000 to $300,000. But remember, there will likely be consolidations and potential dips. This may sound crazy to some, but if Bitcoin tests lower support areas in the $70k’s or the neckline, it’s not a sign of weakness but a chance to build momentum for the next move.
3. Market Sentiment: Greed Is Here, But This Is Only the Start
The Fear and Greed Index is inching toward extreme greed, sparking comparisons to past market tops. But in bull markets, this index can stay in the greed zone for months. In fact, as we saw in the last cycle, it’s common for brief periods of profit-taking to be followed by renewed buying. This pattern of quick de-leveraging and continued higher highs is what defines parabolic bull cycles. While there may be pullbacks, they’re likely to be short-lived, providing potential buying opportunities.
4. Institutional and Political Momentum
Recent political shifts are sparking new optimism for crypto. The Trump administration's plans to support crypto-friendly policies could bring unprecedented clarity and institutional support to the market. Figures like Charles Hoskinson may even take on advisory roles, which could make the regulatory landscape far more favorable than in past cycles (BULLISH FOR ADA). Combined with the Bitcoin ETF inflows and the ongoing shift of Bitcoin as a strategic reserve asset, these factors create an environment where the demand for Bitcoin could drive prices to multiple new highs oer the course of the next year.
5. The Supply Shock Dynamic
The underlying supply shock in Bitcoin—halving the new supply every four years—is doing its job. We are seeing early signs of the supply-demand squeeze, with long-term holders refusing to sell below $100,000 and short sellers increasingly wary of stepping in. The supply shock is the fundamental backbone of each cycle, and it’s playing out again this year, with institutional interest yet to fully arrive.
What’s Next?
Be prepared for some turbulence, especially as Bitcoin’s price climbs and consolidates. Short-term throwbacks and 10-15% dips may be part of the journey, but if history is any guide, these should serve as stepping stones in a larger trend upward. For altcoin holders, patience could soon pay off, with the potential for explosive moves as Bitcoin stabilizes and Bitcoin dominance pulls back.
Let’s stay vigilant and remember that while excitement is high, there’s always room for calculated caution. Dips may be sudden, but the overall trend appears unstoppable. This moment may very well go down as one of those "it was so obvious all along" periods in crypto history.
Keep watching the charts, and as always, stay prepared and keep a level head. It’s going to be a wild ride.
God bless,
Dan Gambardello
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