Bitcoin faced rejection at the $92k local resistance zone last week, but has rebounded higher after a brief pullback. This price bounce from $83.8k measured 11.24%, made in under three days.
It was argued that the recent, deep retracement below $90k was a part of a cyclical reset. The result is expected to be a transition to a bear market in the coming months and a further price drawdown.
But what if this retracement was not the end? What if, instead, it marked a Bitcoin [BTC] and altcoin bottom, like it did in April?
Understanding Tether and Bitcoin Dominance trends
Source: Alternative.me
The Fear and Greed Index showed fearful market conditions.
Over the past month, it had been at “extreme fear” levels. These conditions were necessary to mark a bottom in the market. It is not a guarantee of a bottom, though.
Source: USDT Dominance on TradingView
Another positive sign was the Tether Dominance reaching a resistance level. USDT.D, or Tether Dominance on TradingView, showed how much of the crypto market cap Tether constitutes. As USDT.D rises, it implies market-wide selling and bearish conditions.
At the time of writing, it faced rejection at the 6.47% resistance level. This level has served as resistance since November 2023. Each revisit has been followed by a sizeable drop in Tether dominance.
In other words, the Bitcoin and altcoin bottom was likely in.
The bearish scenario
CEO and Founder of IntoThe Cryptoverse, Benjamin Cowen, believed that we are on the way to $60k-$70k in 2026. On the way, a bounce to the 200-day moving average (now at $109.4k) would mark a macro lower high.
In the short term, whales closing their longs could also mean that smart money believed the upside is limited.
The bull case for an altcoin bottom
Vanguard Group allowed crypto ETFs and related mutual funds on its platform on the 2nd of December. This could mean that crypto is entering the mainstream once more. Bitcoin ETF inflows also indicated demand.
The Ethereum [ETH] Fusaka upgrade allows Ethereum to roll out targeted, high-impact improvements in a much shorter cycle, among other things. Like the Pectra upgrade excitement, another Ethereum rally could lend its momentum to the altcoins as well.
Final Thoughts
- The Vanguard ETF, the end of Federal Reserve QT, and the Ethereum Fusaka upgrade seemed to mark the altcoin bottom.
- Traders and investors need to respect the prevalent trend and account for the possibility of a shallow bounce, instead of new all-time highs across the market.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/altcoin-bottom-in-sight-vanguards-etf-and-ethereums-fusaka-upgrade-hint-at/