The recent “altcoin season”, which has occurred while Bitcoin has been on the downtrend for the past few days, has made traders “cautious” about what could be the next step.
The main thing that makes crypto traders so fearful is an altcoin-fueled burst peak that pushes crypto back into the pits of a short-term bear phase.
Here are the unique market factors at hand that could give the crypto market reason to move forward with caution.
Bitcoin is trading at $ 35,000 after attempting to surpass $ 40,000 yesterday. $ 5,000 a day candles in both directions have now become the norm in crypto trading, but that’s not what some analysts and traders fear about recent price moves.
Since the 2017 peak of the bull market, crypto investors have been waiting for an altcoin season to reap enormous gains again within a few days.
Bitcoin had to surpass $ 20,000 to spark to kick off this season, but that success has come and gone. Only now altcoins are booming as Bitcoin starts falling. There is a leading crypto trader who is “cautious” about a potential “boom peak” in altcoins.
Altcoin season is on the way?
Crypto trader Johnny Moe is approaching the current price action across crypto for good reason. Bitcoin is trending downwards while altcoins are rising. Polkadot increased 75% in two days and Chainlink reached its all-time high.
Bitcoin and altcoins tend to rise together, with a handful of altcoins entering a peak when the two asset types diverge. Altcoins have been fluctuating recently as they hit their all-time highs, with bitcoin over $ 40,000, but the recent rally is taking place as the leading cryptocurrency in terms of market capitalization falls in altcoins.
The recent rejection of Bitcoin from the $ 40,000 level corresponds to the first highest drop in daily time frames in months. If it comes in more lows, the cryptocurrency will be in a downward trend by definition. Altcoin price action, which continues to soar during Bitcoin dips, could be a repeat of the conditions that led to the 2017 high.