Bitcoin (BTC) has been seeing some consolidation below $50,000 as a psychological barrier. However, altcoins of large size have seen a surge in price during this pullback. This suggests that the "altseason", as they call it, isn't over yet.
Bitcoin's price is still struggling to break through. However, Ether (ETH), which has already broken that resistance and hit a three-month high versus BTC in the last three months, is now facing a run towards the next resistance at the all-time high.
Now, the primary question is whether this Ethereum breakout signals that Bitcoin will follow suit and surpass September's resistance barriers. Historically, September has been a corrective month, meaning that such a breakout may catch many traders off guard.
Bitcoin's daily chart shows that there has been a consolidation of $44,000 to $50,000. The consolidation led to a huge breakout in altcoins across all markets, with some breaking their previous all time high.
Bitcoin is facing a clear resistance. Bitcoin can break this resistance and make a huge impulse move, similar to the breakout above $6,000 during the earlier phase.
Only then would the bearish divergence of the chart be confirmed. The uptrend will be officially reversed at that point.
The market is currently consolidating following the rally from July's lows. The bearish divergence will not be confirmed until Bitcoin loses its lower bound of support range (which can be found at $44,000).
The Ether daily chart shows that Ether has risen above the $3,400 critical breaker. This is a sign of strength for the whole market. There is a difference between Ethereum and Bitcoin right now. Ethereum is making higher highs while Bitcoin is still in a sideways range.
The previous resistance zone, at $3,400, is the key breaker for Ethereum. As long as this zone holds support, it is possible to continue towards the all-time highests.
If the price falls below $3,400, it could lead to a bearish divergence, which would result in a correction of $2,600. This correction could also impact Bitcoin, which has some critical levels that should be monitored as support.