The Shift in the Crypto Market: Altcoins Outperforming Bitcoin
As a crypto trader, you’ve witnessed the ups and downs of multiple bull markets. Now, with Bitcoin doubling from its recent lows, we’re entering the fifth bull market and reaching a crucial point. While Bitcoin has dominated thus far, altcoins are expected to outperform as the bull market progresses.
The Rebound of Ethereum Revenues
For a while, the Ethereum ecosystem experienced declining revenues. However, these revenues are now bottoming out, signaling a potential tradeable bottom for ETH. Although weekly fees have only climbed back to around $30 million, it’s a positive sign after hitting a low of $12.1 million in October. As long as weekly Ethereum fees remain above $30 million, there’s potential for a bullish trade.
Support Levels and Breakouts for ETH
We previously identified the $1,550 price as critical support for ETH. While it briefly dropped below this level twice, it quickly regained strength and broke out from the $1,700 level. This breakout serves as a tradeable signal, and traders should maintain long positions if prices stay above $1,800.
Bitcoin Dominance Decline and Altcoin Volume
In recent weeks, Bitcoin’s dominance has peaked at 53.4% but declined to 51.8%. This shift indicates that traders are taking on more risk through altcoins like ETH. Additionally, trading volume has shifted towards altcoins, with traders now trading more ETH than before.
The Fear & Greed Index and an ‘Alpha’ Environment
The Fear & Greed Index based on the ETH/BTC ratio suggests that the crypto market is transitioning into an ‘alpha’ environment where altcoins could outperform.
Hot Take: Altcoins Poised for Success in the Fifth Bull Market
The current shift in the crypto market indicates that altcoins are likely to outperform Bitcoin in the fifth bull market. With Ethereum’s revenues rebounding and support levels holding strong, it’s a promising time for ETH traders. The decline in Bitcoin dominance and increased altcoin volume further support this trend. As we move into an ‘alpha’ environment, it’s essential to keep an eye on altcoins for potential trading opportunities.
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