As bitcoin makes its break higher the spark this has given to the whole crypto sector has set the altcoins alight.
Altcoins demonstrate persistence
Just when everyone thought that the crypto space was dead it has just got up and started walking around again. Like Lazarus from the dead, the altcoins have started to come back to life.
The SEC seeking to destroy the fiat on/off ramps, its targeting of the two biggest cryptocurrency exchanges in Binance and Coinbase, the pulling down of the three main banks associated with the crypto sector – all designed to bring the entire crypto industry crashing to its knees.
Obviously these actions, as well as many others, have affected the crypto sector. However, who would have thought that after such anti-crypto news had dropped, that within just a couple of weeks or so crypto would have made back all the losses and more.
Gary Gensler of the SEC might want to look into how new technology will always rise, no matter what any heavy handed regulator might think about it. Even the banks are now finally starting to recognise the potential for such crypto innovations as tokenisation and alternative payments systems.
USDT Dominance struggling at support
Back to the altcoins, and USDT Dominance is fighting for survival at the 7.25% level. It has lost 7% over the last couple of weeks, and granted, much of that will have been lost to bitcoin, but even so, a rising bitcoin floats all altcoins.
Having said that, “all altcoins” most certainly will not be the case. The vast majority of altcoins are arguably going to zero, and it might be said, the sooner the better. “The vast majority” will definitely leave a handful of incredibly disruptive altcoins that will be able to flourish and fulfil their incredible potential.
Total 3, which charts all altcoins without bitcoin or ethereum, tells this story. The chart is still in a downtrend but there are signs that it is picking up, having been down to the 0.786 Fibonacci level, and having followed a downward channel since mid-2022.
Be that as it may, altcoins will still for now have to rely on the ascension of bitcoin. The pattern would appear to be a strong upwards move from BTC and then accumulation. It is at this point that value will be diverted out of bitcoin and into altcoins, with the best of these making the running.
Can there still be an altcoin season?
The altcoin seasons of before have been epic in their proportions. If enough liquidity comes into bitcoin and the crypto space in general, then why not? However, with far more regulation coming to crypto there are more uncertainties as to how altcoins will behave.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.