Issue #28 | A Bountiful Harvest

Bitcoin is booming, how to pick altcoins with the Raging Bull, and so much more!

With the Thanksgiving holiday approaching, it appears the crypto market is providing a bountiful harvest for those that used this year to prepare for what’s ahead.

Issue #28 of CoinChartist (VIP) overview

• Bitcoin continues to move up. More evidence BTC could revisit ATHs in December

• 7 different altcoin charts! Plus, how to use the Raging Bull to find altcoin rallies

• Bitcoin Dominance has reversed, or will soon: Here’s why altcoin season is coming

• Special spotlight: Why the Bitcoin bottom is definitely in

• Highlighting BTC miners and a possible secular shift coming

• Macro charts on a dying dollar, precious metals, and AI

• Remember, a premium subscription comes with access to custom technical indicators like the Raging Bull, Trend Wrangler, and more.

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Bitcoin volatility is picking up significantly and this means very different behavior from BTCUSD than we’ve seen most of the year. This alone is going to trip up a lot of traders and investors who’ve become accustomed to the sideways behavior. If you aren’t sure what to do, this is the phase you simply hold and do well. If you are still sidelined, at this point I am not sure what you are waiting for.

As I type this up, Bitcoin is $1,000 higher than this chart, once again, highlighting sudden and extreme intraday volatility. Looking at Japanese candlesticks, we can see that bears attempted to put in an Evening Star reversal pattern like the red box, but thus far have failed. Price stopped at the 50% retracement point of the black down candle that caused the first lower low in 2022. What we ultimately want to see is something like the green box showing failure by bears and increasing strength in bulls. If the weekly closes like the red box, we could see a deeper pullback, but I don’t think so.

Bitcoin price appears to be following a price and RSI fractal from 2019. If taking a bars pattern and pasting it at the same point as the first RSI trend line breakdown, it projects Bitcoin at new all-time highs near $90,000 in January. Remember this chart for later in the Wave Watch section. It is important.

Ideally, BTCUSD follows a similar impulse trajectory as 2020, which could put Bitcoin at or near former all-time highs in December. From the buy signal generated by the breakout above the upper Bollinger Band, it only took 6 weeks to reach former all-time highs. BTCUSD is on week 4 currently, meaning that we could see the top cryptocurrency above $50,000 or $60,000 within just a couple weeks. This may sound shocking, but I am using nothing more than the time measurement tool. It happened before and could happen again.

Something unusually big could be on the way. Not only is the 1W Fisher Transform going to push above the +2.5 standard deviation, which always led to massive bull runs in the past, but it is going to break up out of a four year downtrend line from 2019. 2021 made a lower low on the indicator, signaling a bearish divergence. A higher high could be big.

The path for Bitcoin is a lot more clear than altcoins still, however, things are changing coin by coin. In this section, the goal is twofold. One, I will teach you how to use the Raging Bull in combination with other tools to find good altcoin picks yourself. Two, I’ll highlight how to use these tools to see which altcoins are exhibiting more strength than others, while also showing what to look for from coins that aren’t quite there yet.

To begin, let’s look at Ethereum versus Bitcoin on the ETHBTC pair. Here we can see that the Raging Bull has yet to turn on. On the positive side, an uptrend line from 2017 is holding thus far. The 1M Stochastic is currently crossing bullish, but must rise up from oversold conditions to confirm a trend change.

From here forward, we will move from the strongest altcoins towards the weakest and yet to rally. In this chart, we have FETBTC, showing a breakout in progress of a secondary downtrend line. The primary downtrend line was also broken earlier in 2023. Each time there has been a major trend line break, the Raging Bull has turned on and the Stochastic turned upward. We currently have all these conditions. Specifically, pay attention to how advanced the Stochastic is towards reaching the 50-mark on the indicator. Above there things get a lot more bullish.

Combining a Raging Bull with a trend line breakout, the Parabolic SAR, and the Stochastic has been a killer combo for confirming big moves in altcoins. Here we have SOLBTC, with the 1M Fast Stochastic moving above 50 and approaching 80. The Slow Stochastic is approaching 50, which is an additional buy trigger. Despite recent pullbacks in Solana, it should continue to outperform Bitcoin.

LINKBTC is performing very similar to Solana versus Bitcoin. We have same trend line breakout, Parabolic SAR tag, and Stochastic turning up toward and above key levels.

SKLBTC is doing the exact same thing, which is where I began to recognize the importance of this technical indicator combination. Here, Stochastic is nowhere near as advanced, suggesting the trend is just getting started despite a massive 100% move in a week in Skale.

Next, let’s look more towards weakness. Coins with a chart like Cardano versus Bitcoin could take a little bit longer to break out, but this also could mean there is a big breakout to exploit by getting in earlier. Keep watch for the Raging Bull to turn on and Stochastic to rise above 20. The Raging Bull should turn on and tag the Parabolic SAR for an easy 2x. Although ADABTC suggests that Cardano will soon again massively outperform Bitcoin.

Finally, to the worst looking coin I can find in the top 20: Binance Coin. BNBBTC is ugly, showing almost no strength at all. Much like Ethereum, the Stochastic is only now crossing bullish, but BNBBTC is still a little short of the signal while ETHBTC has crossed. With the situation related to Binance now behind us, BNBBTC could recover from here, but its going to take a while longer.

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