The tables turned, so did the chairs in approval of the crypto bill, just like a judge in a blind audition of the ‘Voice’ talent show would do. And then crypto prices broke all-time highs, the charts went haywire this week, while the search for a new Federal Reserve chairman was on, as the present Chairman Jerome Powell was not giving heed to the president. However, as the ‘crypto’ week, as they call it, comes to a close after all that drama and trauma, it’s time to reflect on what happened this week.
The bills cleared the House of Representatives
Don’t worry, it’s not about the credit card bills, telephone bills, but it’s about the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act. The GENIUS Act, which regulates stablecoins, cleared the committee and is heading to the president’s desk for a final signature before it will be enacted into law. The Anti-CBDC Surveillance State Act, which prevents the Federal Reserve from launching their digital currencies, and the CLARITY Act that decides who regulates crypto in the U.S, passed the House of Representatives, but still have to make it through the Senate.
Bitcoin rises just to fall
Going into the week, Bitcoin bulls led the charge, crashing the resistance levels and re-establishing a new all-time high of $123K. However, after BTC reached its new all-time high, many investors sold the top, taking profits. This led to BTC losing value. In the present context, Bitcoin is fluctuating inside a bearish rising wedge, which is shown in the chart below. The bearish rising wedge signifies that although the buyers are pushing the prices higher with the higher lows and higher highs, however, they are playing a losing game, as the bears are slowly taking the upper hand of the market.
As the rising wedge has not fully formed, Bitcoin might fluctuate inside the trendlines of the wedge until it is formed. During this period of forming the rising wedge, Bitcoin could reach $135K. However, once it breaks down from the wedge, it could fall on the $93K support level. In the backdrop of a bearish future for Bitcoin, there are doubts arising whether the altcoin season is upon us.
According to CoinMarketCap, the Altcoin season index has moved more towards the altcoin season, which means that money is flowing into altcoins from Bitcoin. In addition, the altcoin market cap has increased to $1.5T.
Bitcoin dominance falls, as altcoins revive
Bitcoin’s dominance, which is the market cap of Bitcoin against all the other coins and tokens put together, is decreasing. From 63.8% last week, the Bitcoin dominance tanked to 60.8%, while Ethereum rose from 9.9% last week to 11% as of press time. The altcoins’ cap is also gaining.
As Bitcoin loses its hold in the market, there is a new king in town. Ethereum, the underdog, is poised beautifully for a huge breakout.
Ethereum is set up for a big bang
The descending broadening wedge shown in the chart below is a clear sign of a trend reversal to the upside. Sellers dominate initially; however, each new low is met with stronger buying interest, showing weakening downward pressure.
As the volatility increases with widening wedges, the sellers lose hold of the market, and the accumulation phase begins. With more buyers joining the party, ETH will break out from the upper trendline $3.6K and reach $5.2K.
Altcoins are on the verge of breaking out
An analyst by the pseudonym Carl Moon stated that this year’s altseason would be massive.
So, is it going to be that massive? Let’s take a look at the chart and try to understand.
The total market cap for altcoins is currently at $1.46T, and it could increase since the altcoins fluctuate inside a bullish ascending triangle. When the ascending triangle forms, it means that buyers keep stepping in at higher lows, showing growing buying pressure, while sellers keep defending the same resistance. However, at one point, the buyers will overpower the sellers, and that’s when the breakout to the upside will happen. When the altcoin market cap breaks out, it could go above $2.6T.
What to expect?
As the GENIUS Act lies on Trump’s desk, it would be a matter of a few days before it is signed into law. The other two acts, Anti-CBDC and CLARITY, will be taken into consideration by the Senate, and possibly, if amendments are needed, they may go back and forth before being finally approved by the House and Senate, and then by the president.
After BTC made its new all-time high, investors started to sell the top and started making the maximum profit. With BTC losing dominance and the Altcoins season index moving towards the altcoin season, more sellers will join, and the demand for BTC will further fall, and many will spread wealth into altcoins.
