Bitcoin has triumphantly broken through its prior consolidation phase around the $52K mark, witnessing an impressive rally in the last 24 hours as buyers overcame major resistance levels. This surge resulted in substantial liquidations for sellers as the BTC price climbed to over $57K. Currently, BTC price is witnessing a surge in buying demand as several on-chain indicators have turned bullish, setting the next target of $60K by the weekend. This might create a surge in leading and emerging altcoins in the coming week.
Investors Might Soon Focus On Altcoins
While Bitcoin’s price has been on an upward trajectory over the past few weeks, there hasn’t been a corresponding rise in altcoin prices, with altcoin dominance continuing to decline. This indicates a clear change in investor focus towards Bitcoin, with many placing their bets on its continued price surge.
Typically, when Bitcoin’s price surges and the market sentiment is positive, as seen in events like Bitcoin ETF inflows or Microstrategy’s recent Bitcoin acquisition, interest in altcoins declines. Yet, when Bitcoin’s price reaches a peak or experiences a significant drop, there tends to be a marked movement of capital into the altcoin sector.
In this current bull run, Bitcoin has exceeded forecasts, with past resistance levels being surpassed and profits often diversifying into riskier assets.
Small-scale traders may seek to outsmart larger investors, or “whales,” by investing in meme coins hoping for rapid gains. Yet, these tactics might unintentionally boost Bitcoin’s dominance should these lesser assets not yield the anticipated outcomes.
As a result, during the ongoing Bitcoin bull run, investors are expected to turn their attention to altcoins influenced by Bitcoin’s momentum, such as Ethereum, Litecoin, Cardano, and XRP, in pursuit of extra profits.
Upcoming Bitcoin And Altcoin Predictions
As Bitcoin’s price continues to rise and stabilize around its recent peaks, its short-term price direction is difficult to forecast. Nonetheless, there is an expectation that Bitcoin could experience a notable price surge before the end of the year, possibly exceeding its past cycle’s peak of $68,000. However, there’s a high possibility of breaking the peak before April’s halving event.
Notably, several altcoins are also surging as BTC price rises. In the last week, Ethereum (ETH) has seen substantial increases, reaching its highest price in 22 months and achieving its highest weekly close in nearly two years. ETH price repeatedly surpassed the $3,000 mark, and neared the high of $3,300. Bitcoin’s $60K surge might send ETH price above $3.5K, triggering another wave of short-liquidation.
The price of XRP has experienced an increase, climbing over 5% in the past 24 hours as market momentum shifts. If the price of BTC surpasses the $60K mark, we could potentially see XRP’s price exceed $0.65. At the same time, Litecoin and Cardano are poised to surpass their significant psychological levels of $100 and $1.2, respectively.
It’s worth noting that the altcoin season index has shown a notable upward movement, recovering from a low of 46 to its current position at 61. This indicates that an altcoin rally may be imminent, especially if the BTC price faces challenges at its immediate resistance levels.
