The crypto market has reached a critical point. If bitcoin continues to hold steady, another $100 billion could enter into the altcoins, sparking a massive altcoin season.
Crypto has arrived at a very important juncture. Bitcoin has recently taken out last year’s high and looks to have its sights set on the all-important $48,000 level. Currently still holding firm above $45,000, $BTC could jump to $48,000 very quickly, especially if the announcement of a Spot Bitcoin ETF is made within the next few days.
If the expected announcement is indeed made, and bitcoin does get up towards $48,000 to $50,000, a price hiatus for the king of the cryptocurrencies might take place.
It could be at this point, with bitcoin having made its leap up, that investors start looking to take value out of bitcoin and put it into the altcoins, given that they would need to start playing catch up.
Bitcoin dominance breakout
Source: Trading View
A chart to keep an eye on for this eventuality is BTC Dominance. Currently very high at more than 52% of the crypto market capitalisation, dominance is soon to make either a break to the upside or the downside.
Given that 52% dominance for $BTC hasn’t been seen since June of last year, and before that in April 2021, the turning point may be here. In addition, dominance has come up against strong resistance at this level.
Total3 market cap is key for the altcoins
Source: Trading View
Another key chart to watch is Total3. This is the market cap of all the altcoins excluding $BTC and $ETH. It can be seen that Total3 is at resistance at $520 billion. A breakthrough of this level can lead to more than $100 billion pouring into the altcoins.
A possible rise to $640 billion could be on the cards, with $607 billion also a strong resistance.
Cramer says weak year for crypto
Finally, just one more very strong note of optimism. Jim Cramer, of CNBCs Mad Money has changed his mind and stated that Bitcoin is here to stay, but that he predicts “another weak year for crypto”.
Given the ongoing joke that Cramer always gets it wrong, this could mean that crypto will have a very strong year.
Be this as it may, a correction is very likely coming for crypto, and it does look as though it will be this year. However, for the immediate future, things do look rosy, and that altcoin season may just finally arrive.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/altcoin-season-on-the-horizon