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While Bitcoin remains stuck below a key resistance level, much of the crypto market, especially altcoins like Ethereum and XRP, is showing strong bullish signs. So, why is the broader crypto market pumping while Bitcoin is cooling off?
The answer lies in Bitcoin dominance, which is seeing a sharp drop. Bitcoin dominance refers to how much of the total crypto market value is held in Bitcoin. When this dominance falls, it usually means that investors are moving money from Bitcoin into altcoins. This shift is a sign that “altcoin season” has begun, where assets like Ethereum, Solana, and XRP often outperform Bitcoin.
In fact, Ethereum has surged by nearly 3.75% recently, even as Bitcoin’s share of the market dropped by about 0.62%. The total value of the altcoin market is still below its all-time high, which shows there’s space for further growth. Also, the total crypto market cap, excluding Bitcoin and Ethereum, is showing a bullish pattern similar to what the market saw in 2017 before altcoins exploded in price.
What About Bitcoin? Still Bullish, But Facing Short-Term Resistance
In every past cycle, Bitcoin is usually the first to move. Once it makes a strong rally, the next big move comes from Ethereum. After that, large altcoins begin to rise, followed by smaller and newer altcoins. This pattern has repeated itself over the years, and so far, the current market seems to be following the same path.
However, Bitcoin’s overall long-term trend remains bullish, with a cup-and-handle pattern hinting at a move toward $153,000. However, in the short term, it’s facing tough resistance between $120,000 and $123,000. Until BTC breaks above that zone, it may continue trading sideways.
Short-term indicators like the RSI (Relative Strength Index) show that Bitcoin has cooled down from its overbought levels, which means there’s room for a fresh move up. But before that happens, Bitcoin might dip slightly to around $116,700, where there’s a lot of market liquidity, before possibly heading higher again.
