Bitcoin Hits New High: Analysis of the Alts Market Trends

Bitcoin recently reached a historic high of $123,000, sparking market interest in the subsequent performance of alts. By reviewing the past three Bitcoin breakout markets, we can discover some interesting market patterns.

Since mid-2023, every major breakthrough in Bitcoin has triggered a collective rebound of alts:

• 30,000 to 44,000 USD
• 45,000 to 71,000 US dollars
• $71,000 to $105,000 (after the US election)

After these breakthroughs, alts typically experience a rapid growth period of 3-5 weeks. Subsequently, Bitcoin enters a consolidation phase, regaining its market dominance, which leads to a pullback in the gains of alts.

Currently, we seem to be in a similar market environment. After Bitcoin broke through the resistance level of $107,000, it has reached $123,000 and is expected to challenge the $150,000 mark. If historical patterns repeat, we may be at the starting point of a new altcoin rally cycle.

However, it is important to note that this may not be a long-term altcoin bull market lasting for six months, but rather a short-term sprint. Bitcoin's market dominance has not fallen below key levels, indicating that we have not yet entered a full altcoin season.

The performance of different alts has also shown significant divergence. Ethereum lagged behind Bitcoin at the end of 2023, but since then, the bottom of each pullback has been gradually rising. Solana showed strong performance early on, but its momentum is now nearing stagnation. XRP initially performed weakly, but saw explosive growth after the U.S. elections last year.

A notable feature of the current market is the early launch of payment tokens, especially the "bank tokens" that comply with the ISO20022 standard, which are favored by investors.

Some large-cap coins that have not yet been launched are worth paying attention to, such as:

• BNB: The exchange rate against BTC is close to historical cycle lows.
• LINK: Although it continues to decline, the fundamentals remain strong.
• ADA: is forming a long-term double bottom pattern
• TRX: poised for action
• DOGE: Often performs explosively during Bitcoin breakout cycles.

If Solana begins to attract funding, the tokens within its ecosystem will also be worth paying attention to. In addition, Layer 1 clones such as Sui, Aptos, and AVAX may also experience rotational market trends.

In the current market environment, trading strategies should focus on blue-chip tokens, looking for coins that have not yet launched, and shifting to strong narratives when leading projects start. It may be wiser to temporarily avoid small-cap coins.

Alts may experience a strong cycle lasting 1 to 2 months, but historical experience reminds us to take profits in a timely manner and not to be overly greedy. If Bitcoin breaks through $150,000, the top 20 coins by market cap may collectively rise, and some assets might have significant opportunities for a rebound.

Stay rational in your operations, hold strong tokens, and decisively abandon stagnant targets. Maintain an optimistic attitude, but do not fall into blind euphoria. Keep a close eye on Bitcoin's dominance and BTC trading pair activities. Although this is not a frenzy cycle like in 2017 or 2021, it is still a window of opportunity worth seizing. Small market cap coins will eventually see rotation, but patience is needed to wait for the right timing.