- Bitcoin crossed $30,000 last night for the first time in 10 months
- If it can hold above $29,000 there is a chance that a final push to $32,000 may be on the cards
- Alt season could soon also be upon us as the bear market rally comes to an end
Bitcoin burst through $30,000 last night as its dominance hit a level that suggests a mini alt season soon be upon us. Having been stuck underneath the resistance level of $28,000 for around a month, Bitcoin finally gained the momentum to break through this glass ceiling and head toward its next logical target of $32,000. At the same time, the Bitcoin dominance chart has hit a key resistance area that typically means that alts may be about to get the chance to play catch up.
Bitcoin Finally Clears $28,000
Bitcoin has been acting like a stablecoin of late, stuck underneath the seemingly impenetrable $28,000 region for weeks, but this finally broke last night, allowing Bitcoin to hit $30,450 before subsiding back a few hundred dollars and cooling down. What matters now is where it settles, as this will indicate its future direction.
As we can see, the move through $28,000 has now undone the impact of not just the FTX collapse but also the Celsius collapse from last year:
As we can see, the current resistance area would be a natural place for Bitcoin to not just pause temporarily but in fact finish this bear market rally, but a closer look reveals that $32,000 might actually be a more fitting place to end it:
This would suggest there may be a little more gas left in the tank, and assuming Bitcoin doesn’t just shoot right to it, a scenario like this may be in the offing:
While $32,000 does seem a logical place for Bitcoin’s bear rally to call it a day, it actually wouldn’t historically be the most likely point of termination. History in fact suggests that $47,000 is the region where Bitcoin would top out, but the data to make these assumptions comes from prior bear markets when global finances weren’t stretched as thin as they are. This means it’s unlikely that Bitcoin will see this level before correction.
Alt Season Coming?
While Bitcoin has been having all the fun of late, it may soon be the turn for alt coins. Bitcoin’s dominance has been growing ever since the rally began at the turn of the year and has seen its market share grow from 41% to 48%, hitting a resistance point that has been an alt season harbinger going back to the prior bull run:
Anyone who missed out on Bitcoin’s run from $15,000 will be hoping they can make it up by bagging a quick-running alt coin, but if this bear market rally really is nearing its end then the chances will be one time only.