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Bitcoin triumphantly broke through its previous consolidation phase around the $52,000 mark, witnessing an impressive rally over the past 24 hours as buyers overcame major resistance levels. This rise led to significant liquidations for sellers as the BTC price surged to over $57,000. Currently, BTC price is seeing an increase in buying demand as several on-chain indicators have turned bullish, setting the next target of $60,000 by the weekend. This could create a surge in leading and emerging altcoins in the coming week.
Investors may soon focus on Altcoins
Although the price of Bitcoin has been on an upward trajectory over the past few weeks, there has been no corresponding rise in altcoin prices as altcoin dominance continues to decline. This indicates a clear shift in investor focus towards Bitcoin, with many betting on the price continuing to rise.
Typically, when the price of Bitcoin rises and market sentiment is positive, as evidenced by events such as Bitcoin ETF inflows or Microstrategy's recent acquisition of Bitcoin, interest in altcoins wanes. Yet, when the price of Bitcoin peaks or experiences a significant decline, there tends to be a marked movement of capital into the altcoin sector.
In the current uptrend, Bitcoin has outperformed predictions, with past resistance levels breached and profits often diversifying into riskier assets.
Small traders may seek to outsmart large investors, or “whales,” by investing in meme coins in hopes of making quick gains. Yet these tactics could unintentionally strengthen Bitcoin's dominance if these lesser assets fail to produce the desired results.
As a result, during Bitcoin's current bull run, investors should turn their attention to altcoins influenced by Bitcoin's momentum, such as Ethereum, Litecoin, Cardano, and XRP, in search of additional profits.
Upcoming Bitcoin and Altcoin Predictions
As the price of Bitcoin continues to rise and stabilize around its recent highs, it is difficult to predict its near-term price direction. Nonetheless, Bitcoin is expected to see a notable price rally before the end of the year, perhaps surpassing its previous cycle high of $68,000. However, there is a strong possibility of surpassing the peak before the April halving.
Notably, several altcoins are also rising as the price of BTC rises. Over the past week, Ethereum (ETH) has seen substantial increases, reaching its highest price in 22 months and its highest weekly close in almost two years. ETH price has repeatedly surpassed the $3,000 mark and approached the high of $3,300. Bitcoin's $60,000 surge could push the ETH price above $3.5k, triggering another wave of short liquidation.
The price of XRP has seen an increase, climbing over 5% in the last 24 hours as market dynamics change. If BTC price breaks above the $60,000 mark, we could potentially see XRP price surpass $0.65. At the same time, Litecoin and Cardano are on the verge of surpassing their psychologically important levels of $100 and $1.2, respectively.
It is worth noting that the altcoin seasonal index has shown a notable upward movement, rising from a low of 46 to its current position at 61. This indicates that an altcoin rally could be imminent, especially if BTC price faces challenges at its immediate resistance levels. .
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