With indications that the long-awaited altseason is finally beginning, cryptocurrency markets are booming. While Bitcoin remains the dominant force, its recent consolidation has opened the door for altcoins to shine. The altcoin market is experiencing tremendous growth, from Solana and XRP to meme coins and DeFi tokens, and experts predict that this is only the beginning.
Here are five important things to watch this week, though, as Bitcoin continues to dominate the macro narrative:
1. Bitcoin Loses Dominance, Altcoins Burn
The dominance of Bitcoin has fallen below 51%, which is a traditional early indication of an altseason. In the past, traders have shifted their profits into altcoins when Bitcoin cools off following a robust rally. With tokens like Solana, Avalanche, Chainlink, and XRP outperforming, it appears that this is precisely what is taking place right now.
2. Important Technical Levels to Monitor
At the moment, Bitcoin is trading between $61,000 and $65,000. Bitcoin’s upward trend could be revived by a breakout above $65,500, but a decline below $60,000 could change the short-term outlook to one that is more pessimistic. The 50-day moving average is a key support line that traders are keeping a close eye on.
3. Institutional Movements and ETF Flows
Inflows into Bitcoin spot ETFs are still occurring, with Fidelity and BlackRock leading the way. But the pace has slowed a little. With reports of Solana and Ethereum ETF approvals imminent, market observers are examining whether institutions will start diversifying into altcoin ETFs.
4. On-Chain Indicators Point to Consolidation
Long-term holder activity has increased, according to Glassnode data, and Bitcoin is moving into cold wallets. The fact that exchange reserves are still low indicates that fewer people are trying to sell. Funding rates are rising, though, which suggests that leverage is increasing, which may cause volatility.
5. Macro Factors May Quickly Change Attitude
Risk assets may be impacted by this week’s U.S. economic data, particularly inflation updates. Crypto markets could be shaken by an unexpected CPI figure or Fed statement, reminding everyone that macro is still important.
Bitcoin remains the compass even though altseason has arrived.
Also read: Crypto Euphoria Grows, but Market Indicators Flash Caution
