Quick Summary:
- After closing 4 quarters of 2022 red, the crypto bull market is finally greeting 2023 with green candles.
- Crypto influencers are cheering predicting Bitcoin to reach a new higher, however, altcoins are outperforming BTC.
After a long crypto summer, Bitcoin broke the resistance level of December 22, by briefly touching $17,400. Though it was a small gain, the Bitcoin preachers are taking it to celebrate as a good omen to start the year. Bitcoin barely gained 2.6% and this was enough to send many altcoins sky-high in the last two days.
If we compare Bitcoin with Ethereum and Crypto market Cap, it only gained 2.9%, overall crypto market cap increased by 5.59%, and Ethereum tops the list as it gained 10.21% in the same time period.
Soon after, we started to see Tweets from the Bitcoin maximalists like the one below:
I can smell the bull market 📈
— Carl From The Moon (@TheMoonCarl) January 9, 2023
Is the alt season here?
Bitcoin volatility was fading away so traders and investors started to move their money from Bitcoin to altcoins. This pumped the altcoin market and Bitcoin also started gaining volume.
The term “alt season” is used to refer to a period of time during which the prices of alternative cryptocurrencies, or “altcoins,” rise significantly. The exact timing of an alt season is difficult to predict, as it is influenced by a variety of factors such as market sentiment, trading volume, and overall market conditions.
In general, alt seasons tend to occur when there is a broad-based increase in interest in the cryptocurrency market as a whole, which can lead to increased buying pressure for alternative cryptocurrencies. This can be driven by a variety of factors, such as positive regulatory developments, increased mainstream acceptance of cryptocurrencies, or a general sense of optimism in the market.
Bitcoin dominance was touching a local bottom as investors and traders were either cashing out or buying the altcoins. Near the BTC dominance bottom, the crypto marketcap and Ethereum price both touched a local high which indicates the beginning of the alt season.
Right now, Altcoin, specifically the layer2 coins including Ethereum are booming.
Conclusion:
Though the market has not gained much, still it matters a lot for the bulls as they want to create positive market sentiments. However, this bull market might not be as much favorable for Bitcoinists as for the altcoin holders. Bitcoin needs volatility to get fresh buyers, and altcoins have got that already.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
