Investor money will begin to move from Bitcoin (BTC), Ethereum’s native cryptocurrency, to Ether (ETH). This suggests that the market rotation cycle progresses in Phase 2 and that AltSeason may be beginning to take shape.
When this memo was published, Bitcoin shows lateral movement after reaching historic maximum (ATH) $122,500.
Meanwhile, the price of Ethereum currency was quoted above $3,150. This is a level that will not be seen after February 2025.
Historically, AltSeasons usually begin at the final stage of each BTC bull cycle and occur at a well-defined stage, as reported by Cryptonoticia.
Before continuing, it is important to point out that there is no original definition of Altseason, and that the criteria used here are: If 75% of the 50 main altcoins (except for stablecoins and “wrapped” versions of Bitcoins and ether) achieve better performance than BTC.
According to BlockChaincentr Explorer, 33% of main Altcoins have surpassed the performance of currency created by Nakamoto Atoshi in the last three months.
So, what is missing for traders this period?
The cycle is divided into four main phases. The first is characterized by a strong demand for BTC.
Next, in phase 2, when BTC is stable at a high level, Investors begin to transfer their capital to ETHthe most valuable cryptocurrency on the market and you can get a bigger return. This reduces the total market capitalization of Bitcoin domain.
Phase 3 begins when ETH claims impulses. This is when capital flows to other cryptocurrencies in large capital letters, a signal that reflects market enthusiasm.
Phase 4 is a time when a “disturbed happiness” appears on the market, causing speculative demand for cryptocurrency. It’s a period when greater profits are recorded, but there may also be higher than normal losses, as there is no reasonable basis to explain these price increases.
As explained, according to historical patterns, the market is at a significant turning point. ”
This suggests that, together with the key-level BTC domain and the bursting of key resistance in the gross capitalization of the digital asset market, interest and capital can flow with greater force towards cryptocurrencies, predicting a wider diversified growth stage in ecosystems.
