As the crypto market anticipates the aftermath of Bitcoin's fourth halving, a notable change in market dynamics has been observed that could set the stage for an altcoin rally, also known as altseason.
Crypto analyst “Emperor” provided insight into the evolving pattern of Bitcoin’s dominance and its impact on altcoins.
The important role of Bitcoin before the halving
According to “Emperor”, Bitcoin’s dominance is following a significant path, touching the support level last seen after the post-halving crash in 2020. This trend suggests an impending stage where Bitcoin could stabilize and create fertile ground for altcoins to flourish.
“The pre-halving BTC dominance pump is almost complete,” Emperor said, highlighting its strategic positioning at key support levels.
Most altcoins are starting to outperform Bitcoin, and optimism for a significant rise in altcoins is rapidly spreading. This shift comes as many investors and traders have turned to altcoins in recent months for their resilience and low supply costs.
Assets such as APT and W are seen as potential leaders in this rally due to their current positioning despite past declines.
market phase
Mr. Emperor outlines a series of market developments that will impact trader behavior and market liquidity and that may develop in the future.
- Slow Dump – This phase can induce boredom in traders and lead to a decrease in active market participation.
- Instant Dump – Late entrants are likely to be liquidated, and prices may fall rapidly at this stage.
- Slow accumulation – Characterized by gradual penetration into the market, often frustrating impatient traders who may exit the market.
- Big Pump – Expects to reward those with a logical and patient investment strategy.
Mr. Emperor said these phases reflect natural market cycles, where inexperienced traders tend to be weeded out before serious upward momentum takes hold.
Additional Insight – Emperor warns traders about high leverage in breakout trading, suggesting it may not be effective in the current market environment. “I don’t think breakout trading works in crypto right now,” he explained, suggesting a more cautious approach may be needed as the market stabilizes after the halving.
Emperor's Insights has provided valuable perspective to those navigating the complexities of crypto investing. While Bitcoin's dominance points to potential stabilization, the altcoin market may be gearing up for significant activity, with opportunities promising for discerning investors. Masu.
