Bitcoin Price Stabilizes...Altcoin Rally 'Countdown'

▲ Altcoin / AI-generated image

As Bitcoin (BTC) continues its robust upward trend, ensuring market stability, expectations are rising for an imminent large-scale rally in the altcoin market, which has been suppressed until now.

According to Cointelegraph, a virtual asset media outlet, on April 24 (local time), crypto analyst Rekt Capital analyzed that Bitcoin's gradual price increase signals a strong surge in the altcoin market. Rekt Capital predicted that Bitcoin has entered a phase of absorbing sell-offs to break through its previous high, and market liquidity will soon rapidly flow into altcoins.

Bitcoin is currently undergoing a re-accumulation phase where its price is resetting after the halving. Rekt Capital explained that Bitcoin establishing support in the high $70,000 range is a key prerequisite for an altcoin surge. The analysis suggests that a rotational trading phase will unfold, where altcoins that have seen minimal gains will catch up in price as Bitcoin dominance peaks and then stabilizes downwards.

The prevailing sentiment in the market is that the steady inflow of institutional capital through Bitcoin spot ETFs is ensuring downside rigidity for the entire virtual asset market. Rekt Capital emphasized that when Bitcoin shows stable price volatility, investors' preference for risk assets is maximized. These macroeconomic environmental changes act as a trigger, stimulating speculative capital inflow into top market cap altcoins as well as small and medium-sized tokens.

Technical analysis results also support the market's optimism. Rekt Capital diagnosed that Bitcoin's successful breakthrough of key technical resistance levels indicates a repetition of patterns similar to those just before past bull markets. Particularly, if Ethereum (ETH) begins to outperform Bitcoin's upward trend, the overall market's upward momentum will reach its peak, making a historic alt season highly probable.

The virtual asset market is preparing for a phase where altcoins will rally alongside Bitcoin's lead. Bitcoin's ability to maintain stable support and changes in dominance figures are key indicators that will determine the scale of the future rally. Investors are restructuring their portfolios and focusing on market signals in preparation for a full-fledged rotational trading phase.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*