Today's topic: Will Bitcoin undergo a deep correction this week or remain horizontal? If it consolidates, will this provide an opportunity for altcoins to surge? The key lies in the performance of Ethereum and Solana (SOL) against Bitcoin trading pairs.

Bitcoin: Trend is positive, but short-term pullback may occur

Weekly and daily performance

Last week, Bitcoin closed with another bullish candle, forming three consecutive bullish candles, indicating that its weekly trend is overall positive. Even if a pullback occurs this week, it will not damage the overall structure on the weekly chart. At the daily level, there have been four consecutive small bullish candlesticks or a horizontal consolidation phase, showing a state of hesitation in the market.

Top divergence signal and pullback possibility

At the 4-hour level, the top structure and top divergence trend can be clearly seen, indicating that Bitcoin may be blocked at the $100,000 round number, leading to a pullback or horizontal consolidation. It should be noted that if it pulls back to the range of $87,000-$80,000, it may fill the previous gap, which is not good news for altcoin holders, and mental preparation is necessary.

Short-term key points

The current 4-hour level candlestick has formed a Morning Star structure. If it can close above $97,500, the risk of a significant drop in the short term may be temporarily alleviated. If it continues to consolidate horizontally, Bitcoin may adjust within the range, providing space for other market trends.

The two major types of altcoins and this week's performance prediction

Ethereum (ETH): More time is needed to construct the bottom

Ethereum, as a representative of VCB (large mainstream coins), is currently possibly constructing a double bottom structure on the daily level, but has not yet fully formed a clear bottom signal. In the uptrend, it has broken through a small downtrend line, but is currently testing support during the pullback. It is expected to perform relatively stable this week, but in a bull market environment, certain coins may surge by 20%-30% in a short time, which is worth continuous attention.

Solana (SOL): Breakthrough of triangular consolidation is imminent

Solana is currently forming a relatively clear medium-term U-shaped bottom structure and is in the continuation phase of a triangular consolidation. It is expected to have a high probability of breaking through the upper edge of the triangle ($270-$280). Once the breakout occurs, it may lead to an overall surge in MINI-type altcoins such as Meme coins. These types of coins perform relatively strong, but patience is required while waiting for market confirmation signals.

Market scenarios and operation suggestions

Two possible scenarios

  1. Bitcoin deep correction:
    If a significant pullback occurs, altcoins may face a comprehensive adjustment, and preventive measures need to be taken in advance.

  2. Bitcoin horizontal consolidation:
    A horizontal consolidation will provide better performance opportunities for altcoins, especially those that have already formed a bottom structure, which may explode in the short term.

Investor response strategies

  • Conservative investors: Focus on Bitcoin's key resistance and support levels, wait for direction to be clear before acting, and avoid chasing highs.

  • Aggressive investors: Look for potential opportunities in hot sectors, such as bottom validation of Ethereum or breakthrough signals of Solana, while being aware of the risks of capital switching.

Summary

Bitcoin may switch between horizontal and pullback this week, and short-term trends will directly affect the performance of altcoins. Ethereum still needs more time to validate its bottom, while Solana is not far from the triangular breakout. For altcoin holders, patience and risk management are key. We look forward to the market bringing more positive signals, making the wealth code clearer.