Bitcoin’in$BTC

The widening of the trading range and the end of the six-month correction period in altcoins could herald new gains in the crypto market.

According to analysis by CoinDesk, Bitcoin’s widening trading range and its rise above the August peak indicate that new gains are on the way in the markets. It is also observed that the six-month correction trend in altcoins has ended.

Earlier this week, analysts at Bitfinex exchange highlighted the August peak of $65,200 as a critical level for Bitcoin bulls to overcome. The expected breakout occurred yesterday, sending Bitcoin on a significant upward trajectory, up more than 3% in the past nine days.

This created a bullish signal in technical analysis, called an “outside day.” This formation indicates that the consolidation under $65,000 has ended and the rally that started from levels below $53,000 is continuing. Analyst Thomas N. Bulkowski notes that such formations are usually formed in the middle of a price trend and are considered continuation formations, such as flags. Therefore, the breakout is expected to continue in the direction of the current trend.

Similar breaks are also observed in altcoins. Although Bitcoin is stuck in a wide downward channel, it is stated that the total market value of altcoins has broken the six-month correction trend. This development indicates that an “alt season” is approaching, in which cryptocurrencies with smaller market caps perform better compared to Bitcoin and Ethereum.