The crypto markets were showing strong bullish conditions, with Ethereum inching closer to the $4K mark and Bitcoin recovering from a dip to $112k. Despite the positive momentum, there were signs that altcoins might not be ready for a sustained rally.
Ethereum faced resistance near the $3,941 mark, with high selling pressure as it approached the psychological $4K resistance. However, on-chain activity remained elevated, indicating potential demand for ETH that could fuel further price increases. Institutional interest in Ethereum was also on the rise, with predictions like Tom Lee’s $6,000 target not seeming far-fetched.
To gauge the market sentiment for altcoins, analysts examined the Bitcoin Dominance (BTC.D) and the altcoin market capitalization. The altcoin market cap had been trading within a range between $1.34 trillion and $1.54 trillion, with TOTAL2 currently at $1.5 trillion. Traders were advised to exercise caution and not bet on breakouts until the market cap surpassed $1.54 trillion.
Following Bitcoin’s bounce from $113.1K, many altcoins experienced a surge, led by Ethereum. While the overall sentiment was bullish, traders holding long positions in altcoins were advised to consider taking profits and waiting for the next market move.
The BTC.D chart had also been range-bound for the past few weeks, indicating that Bitcoin was outperforming altcoins. Despite expectations of Ethereum reaching new all-time highs due to corporate demand, a breakout might not happen immediately. Given the current market trends in altcoin market cap and BTC dominance, risk-averse traders were urged to secure profits rather than speculating on an imminent breakout.
It’s important to note that the information provided does not constitute financial advice and is solely the writer’s opinion.
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