Bitcoin looks to strengthen relatively speaking after nearly a month of lagging

Key Takeaways

• Bitcoin (BTC) broke out of its triangle pattern today, Monday 11/8, and could set a new all-time high close above 65,990.31.
  
• Relatively speaking, BTCUSD should begin to gain in relative strength based on a minor breakout in its Dominance chart which should help its market capitalization start to pick up speed
  
• LTCUSD, ALGOUSD, and LINKUSD all should be favored for gains in the weeks ahead as these are making favorable technical breakouts that should lead to near-term strength

Monday’s (11/8/21) breakout of 63,300 effectively breaks the triangle pattern that has been ongoing since 10/20 nearly a month ago. This is constructive technically and should carry prices up to 72k initially and then 77.6k which are measured Extension targets based on the initial rally up from July. Momentum is not yet overbought on daily nor weekly timeframes.

Bitcoin now showing evidence that it might show better relative strength than Altcoins in the weeks to come based on a breakout in its Market-cap Dominance chart (Below)

Bitcoin now following suit to what Ethereum accomplished last month when it broke out of its Dominance chart. (See below) This represents a likely shift to higher market capitalization into Bitcoin than altcoins in the near future, and Bitcoin should be favored to gain relative strength

Consolidation since mid-October near former highs has helped to alleviate Bitcoin’s overbought conditions, so this triangle breakout in the absolute chart is happening at a time when BTCUSD is no longer overbought and should lead in acceleration into late November

The uptick to multi-day highs in BTCETH likely signals a switch to better relative outperformance in Bitcoin to Ethereum, but more is needed to confirm this move.

Cycles in Bitcoin and Ethereum show upward progress into end of November before a peak in price that could persist into 2022. Thus, this breakout in BTCUSD might signal the start of a final push-up for Q4 2021 before the Crypto market shows more pronounced consolidation into next year. At present, this is premature, and strength in Bitcoin, Ethereum and many other Altcoins looks likely in the weeks to come.

Chainlink (LINK -2.43% /USD) also is following through and finally breaking out of its own triangle pattern for the first time since early September. Technically speaking (as discussed last week) this had begun to gain momentum on 11/5 that made a breakout seem imminent. Monday (11/8) close above 33.81 serves as confirmation, leading to 43.7 and possibly 52.45k

Litecoin (LTC 0.50% ) also making a similar breakout today, Monday 11/8 which should lead to an acceleration in prices in the near-term after nearly two months of consolidation. Closes above 209.49 should lead to technical targets at 259, then 295.6, both Important retracements based on its May-July 2021 decline. Near-term absolute strength expected into late November.