Bitcoin Breaks Key Resistance, Altcoin Season Looms

Bitcoin (BTC) has recently broken through key technical patterns, reaching new all-time highs and forming an inverse head and shoulders neckline. This development has sparked optimism among analysts, particularly Dan Gambardello, who believes that this setup creates a perfect environment for an altcoin pump. The multi-year inverse head and shoulders targets range from $130,000 to $300,000, with a smaller pattern targeting $150,000 to $160,000 levels. The weekly chart shows Bitcoin breaking above key resistance, with a potential neckline retest on the horizon. Gambardello emphasizes that continuation requires separation from the neckline before moving toward target zones, a condition that Bitcoin has already met.

Regulatory developments have also contributed to market confidence. The US Treasury removed crypto broker reporting rules, including Form 1099-DA requirements, which previously mandated crypto brokers and DeFi platforms to report transactions. This move has sparked optimism towards a potential rally in both BTC and altcoins. Next week brings crypto week with multiple legislative developments planned across Congress, including crypto tax policy hearings and potential legislative breakthroughs supporting market confidence. The House Ways and Means Oversight Committee has rescheduled these hearings, and the House plans full votes on FIT21 legislation, which, if passed, will send the legislation to the President's desk for final approval.

Bitcoin dominance has fallen on weekly charts as regulatory clarity improves. This pattern mirrors November conditions when Bitcoin broke a multi-month structure simultaneously. Bitcoin dominance started falling in November as altcoins began breaking out, and current conditions show Bitcoin breaking multi-month structure toward new all-time highs. Bitcoin dominance hits the upper end of lower high Fibonacci levels, with the 786 line from last cycle’s swing high creating potential resistance. Gambardello notes that Bitcoin dominance is falling right now, with weekly charts showing dominance potentially topping at current Fibonacci levels. November’s altcoin run coincided with Bitcoin dominance decline and new highs, suggesting that a similar setup is developing now with Bitcoin breaking all-time highs again. This pattern suggests altcoin season preparation as dominance weakens consistently.

Ethereum shows early breakout signs from multi-year symmetrical triangle patterns. Ethereum needs separation above the trend line for confirmed breakout signals. The busted pattern scenario involves triangle breakdown, apex pullback, then upward blast. Multi-year symmetrical triangle break creates foundation for altcoin bull market. Ethereum sits at the beginning stages of a potential busted pattern formation. Altcoin markets target breaking the $1.25 trillion market cap resistance area. Weekly wicks cluster around this level, creating multi-touch resistance zones. Breaking above this area triggers new trends of higher highs. The move establishes nice reversal patterns for altcoin markets, excluding Bitcoin. The previous November breakout showed solid upward movement from similar levels. The next target sits around $1.6 trillion market cap for altcoins. Consolidation may occur at $1.6 trillion before further upward movement. Breaking through this level triggers altcoin season headlines across the media. Markets trend above larger pattern formations seeking breakout confirmation. Cardano tests the bottom of the bull market doors around 64 cents. The 200-week moving average creates massive multi-cycle resistance at current levels. Breaking above this area with the moving average flips confirms bullish territory. Gambardello believes that the setup creates perfect conditions for altcoin season development across markets.