Bitcoin Pushed $100 Thousand, Is It Rally Time for Altcoins?

Although Bitcoin started the week at a value close to $90,000 and approached the $100,000 level, it narrowly missed this target. While Bitcoin, which was around 96-97 thousand dollars at the time of writing, completed the week with a value gain of over 7%, signals that gave altcoin investors hope came.

Those who remember previous cycles in cryptocurrency markets know; Generally, when the value increases, money first turns to Bitcoin and then switches to altcoins. I see an alt rally expected on social media in hopes of a similar cycle. With the positive value movement in altcoins this week, let’s re-evaluate Bitcoin’s market dominance.

When we examine the weekly and daily charts in terms of technical analysis, we see that the 60 and 70 percent levels are important resistances. As a matter of fact, Bitcoin Dominance encountered resistance at 60.5%, 61% and 61.5% levels on November 7, 16 and 21, respectively, and bounced back from these levels. In these returns, 58.5% levels served as support. Dominance breaking the 57.2% level, which served as support in 2019 and 2020, could open the door to a healthier cycle for altcoins.

Bitcoin Dominance shows the shift of liquidity from Bitcoin to altcoins. However, it is very critical that there is no major decline in the total value of the cryptocurrency market. Because when there is an outflow of money from the entire market, the possibility of the alt rally becomes difficult.

Let’s take Thursday, November 21 as a positive example. During this period when Bitcoin was trending horizontally, there was a significant inflow of money into many altcoins, especially Ethereum. This hope, which fueled the lower rally in the markets, is still fresh, but it was left unfinished with the outflow of money from the entire market on Sunday (yesterday).

That’s why the most critical data this week will be money flow. If money inflow to cryptocurrency markets continues; The scenario in which Bitcoin does not increase its dominance will be positive for altcoins, but a money outflow will be negative.

It will be useful to keep an eye on the US pre-market and market open as the influx of data from spot Bitcoin ETFs is critical, with over a million Bitcoins now surpassing even Satoshi’s wallets. We will closely monitor whether spot Bitcoin ETFs, which completed last week with over $3 billion in positive inflows, will maintain this appetite.

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