With Bitcoin prices soaring to $95K after a 10% rally in just two days, investors are hopeful for a sustained uptrend with the potential for an alt season in the crypto market. Analysts are speculating on whether altcoins will explode as the market shows signs of optimism. Dom’s Market Flow explains that for altcoins to surge, Bitcoin needs to stabilize or retrace slowly, allowing capital to flow into other cryptocurrencies and kickstarting a potential bull run.
The recent crash in Bitcoin below $80K caused a death cross between the 50-day and 200-day Simple Moving Averages. While a golden cross hasn’t been confirmed yet, the altcoin market cap has recovered above the 50-day SMA, signaling the start of an uptrend. CoinGlass’ alt season index currently sits at 18, indicating that Bitcoin dominance is still high. Analysts suggest that for altcoins to rally, Bitcoin’s dominance needs to cool off, allowing a potential alt season to begin.
Investors must be patient and note that there is still time for altcoins to rally. The recent uptick is only the beginning of the uptrend, primarily driven by Bitcoin’s surge. Therefore, patient investors who accumulate now could potentially benefit greatly from the upcoming alt season. Altcoins need a “cool off” on Bitcoin dominance for capital to flow into them, creating the conditions for a potential alt season to commence.
In conclusion, the crypto market is showing signs of optimism, with Bitcoin leading the way towards a potential alt season. Analysts are hopeful for altcoins to surge as Bitcoin’s dominance cools off, allowing capital to flow into other cryptocurrencies. Patient investors who accumulate now stand to gain from the upcoming alt season, as the recent uptick is just the start of the potential rally. Keep an eye on Bitcoin’s dominance and the altcoin market cap for signs of a forthcoming alt season.
