The expected altcoin season is beginning to make its presence felt under the leadership of coins with a long history, but the continuation of this movement will be determined by Bitcoin's (BTC) price movements.
Following the recent surge in Bitcoin's price to historic highs, the consolidation that began has shifted investors' interest towards riskier altcoins that promise higher returns. Particularly, there have been sharp price increases in older generation altcoins, often referred to as 'dinosaur coins', which had long been forgotten. Ethereum Classic (ETC) led this rally, with its price rising 20% in a short time to reach $25.23. In parallel with this increase, ETC's trading volume surged by 212%, reaching $756 million.
Dogecoin (DOGE), Litecoin (LTC), Bitcoin Cash (BCH), and Ripple (XRP) also joined the rise, attracting investors' interest. Open positions in the DOGE futures market increased by 30% in just 24 hours, surpassing $2 billion. Similarly, UNI open positions saw a 35% increase, reaching $389 million.
The fate of altcoins is in Bitcoin's hands.
Analysts state that the future of this enthusiastic rise in altcoins is entirely dependent on Bitcoin and that two different possibilities are emerging.
The first possibility is that Bitcoin's price breaks above the critical resistance level of $124,000 and maintains an upward trend. In such a case, the altcoin rally is expected to extend into the long term, with investors diversifying their capital across a wider range.
The second possibility is a sharp decline in Bitcoin, falling below the support level of $110,000. In such a scenario, significant liquidations could occur in the altcoin market due to high-leverage trades, leading to price drops of more than 10% in many altcoins.
