Ethereum Gains Momentum as Bitcoin's Rally Temporarily Halts: What Lies Ahead

Bitcoin's recent surge in value has taken a breather, resulting in a slight pullback near $116,000, followed by a recovery of almost 2%. Despite this pause, data indicates that Bitcoin is in a transition phase, not a local top, pointing to potential further growth. Meanwhile, Ethereum is gaining momentum as capital begins to rotate from Bitcoin to Ethereum and other altcoins. This shift is driving a renewed push in altcoins as liquidity moves within the market rather than exiting it.

While Bitcoin's pause has triggered a rotation into Ethereum, analytics firm SwissBlock argues that the broader cycle for Bitcoin remains unfinished. Indicators such as Glassnode’s Short-Term Holder Relative Unrealized Profit and Willy Woo’s Speculation Index suggest the market is not overheated, implying potential for Bitcoin to climb further.