🚨Altcoin Rally: 2 Critical Signals to Watch**
*(Based on PlanD’s August 1 Analysis)*
#### **1. Ethereum (ETH) Breakout: The Altcoin Catalyst**
- **Key Resistance:** $4,000 (upper boundary of a **3-year symmetrical triangle**).
- **Bull Case:** A decisive close above $4,000 could trigger a domino effect for altcoins, as ETH’s dominance often leads market sentiment.
- **Risk:** Failure to hold $4,000 may extend consolidation, delaying altseason.
#### **2. USDT Dominance Drop: Capital Rotation Signal**
- **Current Level:** ~4.71% (recent breakout of a bearish flag).
- **Targets to Watch:**
- **3.81%:** Support from a 1.5-year descending triangle breakout.
- **3.21%:** Bearish flag target → *Strongest signal for altcoin rally* (indicates capital fleeing stablecoins for riskier assets).
---
### **⚠️ Bitcoin Dominance (BTC.D): The Altcoin Threat**
- **Support Held:** 60.30% (3-year rising wedge retest).
- **Potential Rebound:** If BTC.D rallies to **64.60–64.80%**, altcoins could drop **10–20%** short-term.
- **Silver Lining:** Bitcoin’s strength isn’t inherently bad—altseason often follows BTC rallies (e.g., 2020–2021 cycle).
---
### **📉 Bitcoin’s Path to $160K: Implications for Alts**
PlanD outlines two scenarios for BTC, both bullish but with altcoin trade-offs:
1. **Soft Correction:**
- Support at **$113,000** → rebound above **$118,700** → rally to **$160,000**.
- Alts dip **5–10%** before recovering.
2. **Deeper Correction:**
- Support at **$108,000** → slower grind to $160K.
- Alts suffer **10–20%** decline before reversal.
**Key Takeaway:** Altcoin pain may be temporary if BTC’s uptrend resumes.
