Top Highlights
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Bitcoin Dominance Shift: Bitcoin dropped below $110K, leading to over $1.1 billion in long liquidations, heavily impacting altcoins, especially ETH, which fell below $4,000.
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Market Phase Rotation: After 79 days of Ethereum dominance, the market is shifting back to Bitcoin, with signs indicating stable upside potential for altcoins once Bitcoin stabilizes.
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Bullish Technical Patterns: Many altcoins are forming a Cup & Handle structure, suggesting a long-term bullish outlook, despite current price fluctuations.
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Reset Phase Opportunity: Current market signals indicate a reset phase; historical patterns suggest significant gains for BTC (20-30%) and altcoins (50-150%) might follow once the reset completes.
Bitcoin’s Pullback Hits Altcoins Hard, But Recovery May Be Near
Bitcoin’s recent dip below $110,000 sent shockwaves through the cryptocurrency market. Traders experienced over $1.1 billion in long liquidations in just 24 hours. The most affected? Altcoins. A staggering 75% of losses came from alts, with nearly 45% attributed to Ethereum, which fell below $4,000.
Despite this turmoil, experts suggest the downturn may be temporary. Altcoin Vector reports a market shift back to Bitcoin after Ethereum’s dominance for 79 days. During that time, Ethereum soared from $2,200 to a record high of $4,900. Now, traders wonder: Is this the end of alt season or just a pause?
Key analysts remain optimistic. Bitcoin continues to drive the market, and many believe altcoins could bounce back soon. They point to early signs of stabilization in Bitcoin, which may form a market bottom soon. The “Risk-Off Signal” shows no structural weakness, adding to a sense of security.
Crypto analyst Moustache emphasizes that altcoins are forming a classic “Cup & Handle” pattern. This structure often signals a bullish shift in the market, suggesting that a significant upward move may be on the horizon.
Meanwhile, Swissblock’s analysis reveals that the crypto market may be in a reset phase. Historically, their Aggregated Impulse indicator has pointed out significant bottoms. In the past, after similar signals, Bitcoin rallied 20-30% while altcoins surged up to 150%. Currently, 22% of altcoins show negative impulses, indicating the market may near its usual bottom zone.
As the reset completes, ETH and other altcoins historically lead the next market rotation. This potential shift could present substantial opportunities for patient investors. For now, while Bitcoin leads the way, altcoin ideals and their unique value propositions remain essential to watch.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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