The Altcoin Season Will Be Determined by Bitcoin: Two Possibilities as Prices Rise!
The anticipated altcoin season is beginning to make its presence felt under the leadership of long-established coins, but the continuation of this movement will be determined by Bitcoin's (BTC) price movements.
Following last week's historic peak in Bitcoin prices, consolidation began, shifting investor interest to riskier altcoins promising higher returns. Significant price increases were observed in older generation altcoins, often referred to as 'dinosaur coins,' which had been long forgotten. Ethereum Classic (ETC) led this rally, with its price rising by 20% in a short time to reach $25.23. In parallel with this rise, ETC's trading volume increased by 212%, reaching $756 million.
Dogecoin ($DOGE ), Litecoin ($LTC ), Bitcoin Cash (BCH), and Ripple ($XRP ) also participated in the rise, attracting investor 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, with two different possibilities emerging.
The first possibility is that Bitcoin's price rises above the critical resistance level of $124,000, sustaining the upward trend. In such a scenario, the altcoin rally is expected to extend into the long term, and investors will likely spread their capital across a broader range.
The second possibility is that Bitcoin declines below the $110,000 support level, experiencing a sharp drop. In such a scenario, significant liquidations may occur in the altcoin market due to high-leverage trades, and many altcoins may see price drops of over 10%.
