The cryptocurrency market is witnessing an explosion of altcoins as Bitcoin faces short-term resistance, marking a capital shift to coins like Ethereum and XRP.
The strong growth in altcoins stems from the significant decline in Bitcoin's dominance over the total cryptocurrency market capitalization, setting the stage for the continuation of the altcoin season.
MAIN CONTENT
Bitcoin is facing short-term resistance around the price range of 120,000 – 123,000 USD.
Bitcoin's market dominance is rapidly declining, leading to a capital shift towards altcoins.
Ethereum and many other altcoins are growing strongly, expanding market development potential.
Why is the cryptocurrency market rising sharply while Bitcoin is stagnant?
Analysts from Crypto Insights indicate that the decline in Bitcoin's dominance from 48% to around 46% suggests a strong flow of money moving into altcoins. This opens up an era of 'altcoin season' with notable growth in coins like Ethereum, Solana, and XRP.
This phenomenon has also been recorded in history, when investors seek higher profit opportunities in less stable assets but with great growth potential. For example, Ethereum recently increased by 3.75% while Bitcoin decreased by 0.62%, creating a contrast in market momentum.
What is Bitcoin's current status in the market cycle?
According to the CEO of Blockchain Analytics, Bitcoin still maintains a long-term upward trend with the cup-and-handle technical pattern signaling a potential price increase to around 153,000 USD in the future.
However, in the short term, Bitcoin is under strong resistance pressure from the price level of 120,000 to 123,000 USD. Technical indicators like the RSI indicate that Bitcoin has cooled down from the overbought zone, meaning it is in a phase of accumulation or slight adjustment before potentially breaking out again.
When Bitcoin stands still, altcoins will rise. The market always follows the law of shifting capital from safe assets to channels with higher potential.
Michael Tse, CEO of Blockchain Analytics, June 2024
In particular, support areas around 116,700 USD may provide important liquidity for Bitcoin to prepare for the next bullish wave.
How does the decline in Bitcoin's dominance affect the altcoin market?
According to a report by Digital Asset Research, the decline in Bitcoin's dominance reflects a broader capital allocation trend in the cryptocurrency market, making altcoins the new investment focus.
The simultaneous price increase of Ethereum and major altcoins has activated positive sentiment, creating momentum for smaller Tokens to develop in the current phase. This is a typical sign of the 'altcoin season' that occurred in 2017 with many altcoins reaching breakthrough ATHs.
Changes in market capitalization structure facilitate more diversity and enhance investment efficiency in the cryptocurrency ecosystem.
Sarah Johnson, Head of Digital Asset Research, May 2024
What are the notable short-term technical indicators and potential Bitcoin price?
According to technical analyst John Lee, the RSI indicator shows that Bitcoin is escaping the overbought zone, creating favorable conditions for a breakout in the late second quarter of 2024.
Although there may be a slight adjustment around 116,700 USD to consolidate liquidity, price patterns and technical support still lean towards growth potential. This aligns with many previous cycles when Bitcoin adjusted to establish a new foundation for the next upward trend.
Can we predict the upcoming altcoin market development?
Based on capital flow data and price volatility, experts predict that altcoins will continue to be favored in the medium term. The growth of Ethereum and major altcoins contributes to strengthening market confidence and expanding a more diverse investment portfolio.
The liquidity of the altcoin market is still below the peak of 2017, indicating that there is still ample room for development and the potential for price explosions in the coming months.
Frequently Asked Questions
Is Bitcoin at risk of long-term decline due to the strong price increase of altcoins?
Bitcoin still plays a dominant role in the cryptocurrency ecosystem with a long-term upward trend. The rise of altcoins is merely a temporary capital shift, not signaling a sustainable weakening of Bitcoin.
What are the signs that indicate the start of altcoin season?
The significant drop in Bitcoin's dominance, along with the rapid price increase of major altcoins like Ethereum and XRP, is a clear sign of altcoin season.
How does RSI affect Bitcoin's price trend?
The RSI indicator helps identify overbought or oversold zones. Bitcoin is currently escaping the overbought zone, creating conditions for buyers to rise in the accumulation or recovery phase.
Will Bitcoin soon break the resistance level of 123,000 USD?
The likelihood of Bitcoin breaking this level depends on capital flow pressure and market sentiment. According to technical analysis, resistance pressure remains high; strong buying force is needed to overcome it.
Which altcoins are expected to grow significantly in this altcoin season?
Ethereum, Solana, XRP, and some other well-founded altcoins are leading the new rally, attracting significant interest from investors.
Source: https://tintucbitcoin.com/bitcoin-lo-nhip-tang-gia-hom-nay/
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