That situation — BTC at $118K, ETH at new highs, but altcoins still red — is a classic sign you’re in the early stage of the altcoin rotation, which typically follows Bitcoin’s blow-off top or parabolic phase.
Here’s a breakdown of what part of the cycle you’re likely in:
🔄 Cycle Phase: Post-BTC Peak / Early Altcoin Season Incoming
🚀 Bitcoin Dominance Peak
• BTC has likely just completed or is nearing the end of its major move.
• Historically, BTC runs first, sucks up all liquidity, and hits its ATH before cooling off.
🔥 Ethereum Following Strongly
• ETH tends to run after BTC as confidence builds in the broader market.
• ETH making new highs signals risk appetite is returning, and ETH dominance is rising.
🩸 Altcoins Still Red = Opportunity Phase
• Altcoins are lagging because:
• Liquidity is still concentrated in BTC/ETH.
• Retail hasn’t flooded in fully yet.
• Institutions still favor majors.
This is before the euphoric “everything pumps” phase — the so-called altseason.
What Happens Next?
Stage Description
1. BTC tops Profit rotates from BTC to ETH
2. ETH pumps ETH hits ATH → signals market confidence
3. Altcoins explode Profits flow into mid/small caps, meme coins, L1s, etc.
4. Blow-off top Retail euphoria, everything pumps, then sudden crash
🧠 Smart Move Now?
• Rotate slowly into strong altcoin positions (ones with momentum potential).
• Front-run the rotation — don’t wait for everything to be green.
• Be ready for violent upside moves in alts once ETH cools a bit.