- Bitcoin’s bullish reversal is fueling optimism, with renewed support and resistance levels ready to be tested.
- Altcoins are advancing as Bitcoin consolidates, signaling the potential for significant upside in the current bullish phase of the crypto market.
Recent developments in the crypto market point to a favorable picture for altcoins, as Bitcoin is showing symptoms of a short-term bullish reversal. Popular crypto analyst Alan Santana on TradingView notes that, especially at the 0.786 Fibonacci retracement level, the market is now recovering important resistance levels as support.
With higher low verified should Bitcoin close above $93,751 within the hour, Santana notes that the recent decline could represent a failed breakout. This would pave the way for exploration of higher resistance levels, perhaps in the range of $99,000 to as high as $108,000.
Altcoin season is progressing amid Bitcoin’s bullish consolidation
Santana notes that the current upward momentum is an excellent indicator of aligning positions with the market trend. At this point, he advises against short positions as a sustained reversal could develop into a higher high or perhaps a bullish stop altogether.
Falling prices, Santana argues, offer buying opportunities instead of cause for concern. His chart analysis highlights the good sentiment and the need to maintain a long position in the market in such circumstances.
This situation will especially help altcoins. Santana notes that cryptocurrencies typically see significant gains when Bitcoin rallies within a bull market. In the past, some altcoins have jumped 80% or more, while Bitcoin has gained 10%.
Comparatively, an altcoin increase of over 300% traditionally follows a 40% increase in the value of Bitcoin. This dynamic highlights the difference between altcoins, which represent greater growth potential for individual investors, and Bitcoin, which is sometimes considered the domain of institutional investors and “whales.”
Ago report from Crypto News Flash (CNF) confirms this view, saying that Bitcoin’s dominance is declining – a significant indicator that points to the beginning of the altcoin season. Based on changes in market dynamics, historical patterns also suggest that cryptocurrencies could experience significant moves over the next three to six months.
