Bitcoin has enjoyed a $400 jump this week, kicking the potential profits of a number of alts into touch, at least temporarily. Is this the end of this alt season, or is Bitcoin just enjoying its moment in the sun before alts come back for more? Our in-house analyst Will Gambit of CryptoDayTraders.io offers his thoughts.
Bitcoin’s Bounce Overshadowed by Ethereum
While Bitcoin’s upward move was important, and anticipated, what’s more important is Ethereum’s move, which was 7% compared to Bitcoin’s 1% in USD terms. In BTC terms it was also significant:
The fact that Ethereum has continued to push on past this break in the 18-month downtrend is significant for alts and suggests that, rather than this Bitcoin move being the end of alt season, it might have in fact helped usher in the next leg.
As we know, Ethereum is considered the marker for the alt market, and to see it outperforming Bitcoin like this, undoubtedly due to the news of the Ethereum 2.0 final test happening within a couple of weeks, is great news for the alt market.
Key Levels to Watch From Here
Following this move from Ethereum, I am anticipating this as being the next move for Bitcoin dominance:
Such a move would give alts freedom to move even further as a clear downward trend has now been established. This sentiment is echoed in the alt coin market cap situation:
Breaking and staying above $92 billion was crucial for alt season to really get started, and now we seem to be heading for my ultimate goal of the $115-$120 billion range. If we hit this target as I suspect we will, we can start to see three figure alt gains across the board as the entire market lets loose after two and a half years of downard price action and compression.
The only sticking point could be a violent Bitcoin move in either direction, which would certainly have an immediate impact on alts. A heavy Bitcoin drop would likely result in alts rebounding again once the market had settled, while only a breaking of $10,400 would see money flood out of alts and back into Bitcoin.
Until then, all eyes remain on alts.