The cryptocurrency market is preparing for a potential significant price rise led by Bitcoin, often referred to as its “king.” During such instances, traders and investors often join the trend if they haven’t already, considering Bitcoin as the main vessel. After the market stabilizes, other digital currencies, or altcoins, usually follow suit. The question is whether this pattern will hold true in this particular situation.
Bitcoin price surge awaited
To start, there’s a general belief that Bitcoin ($BTC) will indeed reach its record high, either by the close of this week or within the coming days. A common trading principle suggests that when an asset breaches a bull flag and confirms the breakout, it typically continues to rise. This is the situation Bitcoin finds itself in at present.
It appears that Bitcoin is poised to surpass its record high, as a monthly candle closure is expected by the end of this Thursday. Should the closing be positive, we might witness some robust price increases.
The question is will altcoins also surge?
Bitcoin season for now
Except for a few exceptions that stand out, it doesn’t seem like we’re in a position for an altcoin season right now, as indicated by the Altcoin Season Index, which currently points towards a ‘Bitcoin Dominance’ phase.
As Bitcoin’s price volatility continues with potential explosive movements, driven partly by intense investment in U.S. Spot Bitcoin ETFs, it seems that Bitcoin enthusiasm might not dissipate soon, keeping a lid on altcoin freedom for a while.
Total3 market cap could increase by 50%
The Total3 chart tracks the total combined market cap of all cryptocurrencies, with the exception of $BTC and $ETH. This gives a good picture of where the altcoins are right now, and that is up against resistance.
After forming its own ‘bull flag’ and validating the breakout, the total market cap of altcoins appears ready to soar higher. If the break occurs, the potential rise according to the ‘bull flag’ pattern might lead to a 50% increase in the altcoin market cap.
Don’t blow yourself up – stay in the market
To remember when investing in altcoins, it’s crucial to keep in mind that not every altcoin will yield profits. With numerous trading platforms and digital wallets available, there are literally thousands of different altcoins you can invest in.
Absolutely! While it’s true that some meme coins or small-cap altcoins might experience significant growth multiples, similar to winning a lottery, the prudent investor should focus on thorough research and analysis of the fundamentals instead.
In this market surge, it’s likely that the strong digital currencies will thrive, while many weak ones may fail and ultimately become worthless.
An investor’s primary role is to place themselves on the swiftest horses (i.e., the most promising investments) while minimizing risk as much as feasible. However, altcoin season could potentially occur, but it might happen in a narrow timeframe. The investor’s final responsibility is to stay invested during this period. It’s essential to remember not to be overly greedy and withdraw from the market when technical indicators suggest the peak has been reached.
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2024-10-31 16:13