Bitcoin passed the $100,000 mark on Wednesday. The cryptocurrency reached a new high of $104,088 at December 5, a milestone that was not achieved before. Bitcoin traders were rewarded for their enthusiasm with a significant increase in the volume of BTC Options trades.
Bitcoins’ rally up to $100,000BTCThe cycle will progress and traders expect to see higher returns. While the altcoin market is active, traders are likely to rotate their capital. This is especially true for altcoins (such as Ethereum).ETH), Render (RNDR), Sui (SUIPepePEPE), Hyperliquid (HYPEOndoONDO).
Bitcoin Cycle Top and Where BTC will be after $104,000
Bitcoin Pi Cycle Top Indicator predicts that BTC will top this cycle when it breaks past $125.494. Bitcoin has fallen 22% short of the target. The dominance index is up nearly 2% in just two days.
BTC’s gains could be extended if Bitcoin continues to gain dominance. It is interesting to note that the altcoins are in full force, as 75% outperformed BTC within a 90 day period.
BTC’s top indicator is approaching a multiple on the Pi Cycle, which measures the average of 350 days. Rising dominance also supports the bullish hypothesis for BTC.
Santiment’s Network realized loss/profit metric shows traders taking consistent profits on Bitcoin. Between October 8 and 5, several large spikes occurred. However, this is relatively small compared with the price spike in May 2024 where BTC hovered at around $70,000.
Increased selling pressure on crypto exchanges could lead to a BTC correction if the NPL metrics show larger and more concentrated spikes.
Altcoins worth watching this Week
Blockchain.centre has created an altcoin seasonal index that suggests alts will continue to perform better than BTC in the future, just as they have done over the past 90-days. The index helps determine if the altcoins that are in the 100 top cryptocurrencies by market cap have made gains, or fallen behind Bitcoin.
Render is the most important token to keep an eye on, followed by Sui, Hyperliquid, Pepe and Ondo.
Render is close to reaching its high of $11.7613, which was reached in March 2024. RNDR could test $13.6330 resistance with a 35% rise from its current price. The technical indicators relative strength index, moving average convergence/divergence and moving mean convergence/ divergence all support a price increase in RNDR.
This cycle’s top price and cycle target is set at $16,9517, based on the 161,80% Fibonacci retracement.
SUI still has nearly 20 percent to go before it reaches its important psychological $5 goal. Sui token is trading at $4.1588 as of December 5. Bitcoin and Sui are both on the rise.
RSI crossed over 70. Normally, this is a signal to sell for traders. However, MACD can see a crossover between the MACD and the Signal Line, a sign of bullishness for SUI.
PEPE will soon test the peak price of $0.00002597 in November 2024, which is nearly 17% higher than current prices.
RSI slopes upwards, and is below the 70-level. This means that PEPE has not yet entered the zone of overvaluation. PEPE may enter a price discovery phase once it has broken through its peak in November. The price discovery goal for PEPE is $0.00003348.
The price target is the Fibonacci 141.40% retracement from the November rally.
The price of HYPE rose to a record high on Thursday at $0.12875. The token may rally up to the important psychological level of $0.15000, which is nearly 22 percent above its current price.
This is the Fibonacci retracement 141.40% of HYPE’s new high.
The technical indicators are in favor of a rise in the HYPE prices.
ONDO is currently trading at $1.74214. It is currently 12% below its highest ever value of $1.95063.
RSI slopes upward and indicates that ONDO, at 86, is currently overvalued. MACD, which is usually a signal to sell the token, flashes green bars in the histogram above the neutral line. This indicates underlying momentum for ONDO’s price.
Ethereum gains gears
Ethereum has been on a trend of upward movement. If the altcoin maintains its upward trend, it could reach its all-time record high of $4 878.
ETH must break through the $4,000 psychologically significant level in order to reach the former all-time record high. This will be the beginning of price discovery for this cycle. Ethereum is poised for more gains with upcoming developments in the ecosystem and increased utility and adoption of layer 2 and 3 chains.
The RSI has a positive slope and is above 70. MACD shows underlying strength in the Ethereum price on daily timeframe.
Strategic considerations
Trading capital is being shifted to other altcoins like XRP based Solana tokens and meme coins.
According to Coinglass, over $135 million worth of shorts have been liquidated within the last 24 hours. Bitcoin’s rise from $104,000 to $100000 has increased open interest by nearly 12% and options trading volume by 125%.
Bitcoin traders are taking consistent profits, which supports the capital-rotation thesis.
Ki Young Ju, of CryptoQuant, argues that this cycle is unlike previous cycles. The institutional investors who bought Bitcoins have no desire to move into altcoins. Therefore, altcoin prices are dependent on the influx of retail traders from crypto exchange platforms.
The top altcoin cycle this season can be determined by the activity on exchanges and chart of altcoin market cap.
The crypto market cap, without Bitcoin, remains 8.5% lower than its cycle high of 1,71 trillion dollars in 2021. The market capitalization is predicted to surpass $1.57 trillion as retail traders invest in crypto exchanges.
Chart is important for traders to consider if they want altcoins to be a good alternative while Bitcoin stays above $100,000.
Disclosure: The article is not intended to be investment advice. All content on this site is for educational use only.
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Source: crypto.news
