As the entire market waits with baited breath for Bitcoin ($BTC) to finally reach the round figure of $100,000, the altcoins are jockeying for position, ready to explode if Bitcoin can settle down and go sideways for a time.
Altcoins primed and ready
The $BTC price (BTC/USD) is just a little matter of $2,000 or so away from the prize of $100,000. That it will get there does not appear to be a matter of much doubt, although the market is always ready to throw a spanner in the works if there is money to be made.
While $BTC is making this last assault on the summit, all eyes will be riveted on its progress. That said, there are likely to be investors and traders who are already in their altcoin positions, ready for a potential take-off from this segment of the crypto market.
Bitcoin Dominance chart needs to be watched closely
Source: TradingView
Having said this, it must be acknowledged that the Bitcoin Dominance chart is still very much in favour of the king of the cryptocurrencies. It can be seen that Dominance has broken out of the top of an ascending channel that has been in force since June 2023.
This said, if one opens a weekly chart and looks left, the current Bitcoin Dominance is actually at a strong horizontal resistance level. Therefore this is going to be key. Those wishing to back the altcoins will need to keep their eyes peeled on this chart.
Total2 breakout could presage an imminent start to altcoin season
Source: TradingView
Nevertheless, the Total2 chart (total market capitalization of all cryptocurrencies, excluding $BTC) is displaying a rather mouth-watering situation for altcoin holders. Having broken through a very long term descending trendline, the altcoin market cap has recently been traversing inside an ascending triangle. This looks to have broken to the upside on Thursday.
The bullish scenario will continue to develop if the altcoin market cap can confirm above the top of the ascending triangle. This would likely signal a lot more upside to come.
Bitcoin’s next movements are key
In summary, the fortunes of the altcoins will very much depend on what Bitcoin does over the next few days. If the $BTC price does reach $100,000, it could either keep going, get rejected, or just start to consolidate. The favoured scenario for altcoin traders would probably be the third one.
If this did occur, many traders would perhaps look at moving some of their Bitcoin gains into some of the top-performing altcoins. We aren’t at an official altseason yet, but this could certainly be a beginning. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
