1. **Rising Wedge Pattern**: The rising wedge on the weekly timeframe is indeed a bearish pattern, suggesting that BTC.D might face a decline. If BTC.D breaks down from this wedge, it would signal a loss of dominance in the market, typically a precursor to altcoin strength.
2. **21 MA Support**: The 21-week Moving Average (MA) acting as support below the wedge adds an important layer to watch. If BTC.D respects this support, it could delay or mitigate the bearish scenario. However, a sustained breakdown below this moving average would strengthen the bearish outlook.
3. **Implications for Altcoins**: A decline in BTC.D, while Bitcoin itself moves sideways or shows modest bullish momentum, often correlates with an altcoin bull run. This scenario would be characterized by increased investor interest in alternative cryptocurrencies as capital rotates from Bitcoin to altcoins.
**Key Levels to Watch**:
- **Support Levels**: Monitor the wedge's lower boundary and the 21 MA. A breakdown below these levels would confirm the bearish setup.
- **Resistance Levels**: Watch for any false breakouts to the upside; this would be a counter-signal to the bearish outlook.
**Conclusion**: Stay vigilant for a breakdown confirmation, as it would signal an excellent opportunity for altcoin positions, especially if Bitcoin remains stable or slightly bullish. However, a strong support reaction could temporarily keep BTC dominance intact, delaying an altcoin rally.
