Good evening to all my friends. I hope you all are doing well. I am having a fantastic day. Today i am going to discuss about market structure, Bitcoin, and the altcoin market cap. At the end, we’ll focus on the potential breakout in the altcoin market cap after one year. Let’s dive in. Bitcoin is currently trading above $104000 in January 2024. Back in 2023, Bitcoin reversed at around $16,000 and surged to $31,000, followed by six months of consolidation. After this phase, Bitcoin broke out from a symmetrical triangle formation and reached $74,000. This was after the approval of Bitcoin ETFs.
Looking at the last year, Bitcoin consolidated for 6-7 months before breaking out of the range, similar to 2023. If we look at the current scenario, Bitcoin is forming another symmetrical triangle. The key levels to watch are $89,000 as the production cost level. If Bitcoin breaks below this, we may see further correction. However, if it sustains above this level, we could see new highs. In the broader crypto market, we see the total market cap bouncing from a strong support trendline, with a recent recovery of over $400 billion. If we look at altcoins, the resistance level at around $366 billion needs to break for a significant move upward. In conclusion, while the market might face corrections in the short term, the breakout of key resistance levels could lead to a price discovery phase for altcoins and Bitcoin. That's it for today. Thanks & have a good day!!