Altcoins have been rocketing higher today as Bitcoin consolidates. This is the first time that altcoins have shown any signs of following in Bitcoin’s footsteps, as the benchmark cryptocurrency has been sucking all the oxygen out of the market over the past few days.
Today’s altcoin market rally was likely spurred by Ethereum catching an impulse wave that sent it rocketing higher.
Following a prolonged period of sideways trading, ETH was finally able to gain momentum a couple of days ago when news regarding the imminent release of the 2.0 network upgrade broke.
This news sent its price from $380 to $410, where it stalled and consolidated for a day or so before gaining any momentum. Meanwhile, Bitcoin rocketed to fresh post-2017 highs of $16,000.
Now that Ethereum has gained some ground against BTC following its intense surge to $450 overnight, altcoins are beginning to show signs of forming bottoms.
One trader is now laying out how he expects the next so-called “altseason” to unfold, stating that there will likely be one quick rally by BTC that creates a “blow-off top,” with profits then spilling into the altcoin market.
Bitcoin Shows Signs of Strength as Altcoins Rally
Bitcoin is currently stable at its current price of $15,400. This is where it has been trading throughout the past day, with buyers unable to push it above $16,000 yesterday.
The benchmark crypto is up significantly from its recent lows of $13,300 set just a few days ago.
This uptrend is being driven by fundamental strength, and the rest of the market is beginning to match its strength.
Altcoins – and the DeFi sector in particular – are rebounding and moving to mark their recent lows as a long-term bottom.
Here’s the Path Forward for Altcoins to See Further Gains
One analyst explained in a recent tweet that he is expecting Bitcoin to see one more strong push higher before posting a “blow-off top.”
He contends that this will open the gates for altcoins to see some explosive momentum.
“Ratio’s are going up (into bearish territory), but it’s nothing extreme yet. So, I think the following is likely… A scenario just like in July/August. One cool off day (today), then one final quick rally which creates a blow off top. After that, most likely alt season.”
Image Courtesy of Byzantine General. Source: TradingView.
If altcoins begin forming a long-term bottom, the DeFi sector may be the first to rally due to the intensity of the recent selloff it faced.
Featured image from Unsplash. Charts from TradingView.