BTC Is Booming: Is This the Calm Before the Altcoin Storm?
BTC is on a steady increase, reaching another all-time high of 107000. This is why I've always said that the cryptocurrency market is unpredictable, and anything may happen.
There is also the likelihood that Bitcoin may hit 200K in two months and afterwards rise to 2,50,000, as predicted by all experts.
Bitcoin's price is continually rising, indicating strong investor confidence and indicating that investors are currently more interested in Bitcoin than in Altcoins.
It is obvious that if BTC prices rise, so will the price of BTC domination. As this dominance grows, altcoins will decline as liquidity flows into Bitcoin.
As soon as BTC stabilizes, we will witness a massive bullish momentum in cryptocurrencies. It is apparent that when BTC dominance rises, no altcoin will rise. Because most investment goes to Bitcoin, altcoins struggle in this way.
This often leads to sideways or downward price movements for altcoins. We need Bitcoin's price to remain stable. Bitcoin needs to stabilize. Investors frequently turn to altcoins once the BTC price has settled into a range.
For bigger gains, it is apparent that once BTC stabilizes, there will be a massive altcoin season, with prices rising by more than 30 to 50%.
This is the market mood and how it affects the cryptocurrency market. You must understand the basic market laws governing how this works. We will not see any cryptocurrencies going upside until the price of Bitcoin has stabilized.
The BTC dominance chart now shows a value of 57.56%. This is the primary reason for cryptocurrencies' decline, as we have seen Bitcoin dominance increase over the last five to six days.
As soon as BTC becomes steady or enters a consolidation phase, investors profit from it and reinvest in altcoins, indicating that money flow will shift to altcoins.
You must be prepared for every situation that crypto investors may encounter. To prepare for an upcoming altcoin rise, you should invest in potential projects that will yield a bigger return.
Historically, when Bitcoin outperforms, all other cryptocurrencies remain constant or fall; as BTC stabilizes, the bullish trend for altcoins begins. This is how the cryptocurrency cycle operates.
At last, I will advise you that you should diversify your investments in several altcoins rather than investing all of your money in a single currency because certain altcoins perform well while others remain leggish.
BTC dominance is currently at a resistance level, and if it rejects and falls, the altcoin season will undoubtedly begin.
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