In the past few days, cryptocurrencies have been rising. These cryptocurrencies have always been unpredictable and prices rise when we least expect them. Bitcoin is the one that always encourages the bull run and also drags the entire market with its price action.
The present bull market is also led by Bitcoin crossing $47,000 and pushing Ethereum and other major cryptocurrencies on green candles pointing towards an emerging alt season.
Alt season is a market cycle in crypto where altcoins outperform Bitcoin. However, for any alt season to kick in there are many things to consider. Let’s see what those are.
Any trading cycle be it crypto trading or stock market trading has a bull run & bear pull. Sometimes the market decides to approach it differently. For example, any bull run is of Bitcoin and altcoins rallying simultaneously. But in reality, when Bitcoin starts trading upward, altcoins decide to take a back seat and start to rally only when BTC calms down before its next rally.
Factors That Matter For Altseason!
The first factor is the capital rotation from investors who are looking for maximum profit. As Bitcoin has crossed its $47,000 resistance barrier now and Ethereum along with other altcoins following its footsteps, there are high chances that alt season has begun.
Another factor is where Bitcoin dominance is reduced during any altseason. At present, Bitcoin dominance is floating around 42% after facing rejection at 44%. This is an indication of alt season as capital is flowing from Bitcoin to altcoin.
Bitcoin Price Matters
Another factor to look at for the alt season to begin is Bitcoin’s price. Though it is expected that Bitcoin will hit the $53,000 level, nothing is certain. With the current trading Bitcoin has three support, $52,000 to $53,000 , $42,076 to $44,654 and $35,000 to $37,033.
The first area seems not possible as BTC has not yet reached the $50k level, the second is the immediate support, and the last acts as defense. If Bitcoin reaches the last line of support, then the price could crash to $30,000.
Hence, all thanks to Bitcoin for its sideway moments, and its dominance plunge which strongly points towards approaching altseason.