Alt season edition: When the music stops

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View this email in your browser Welcome to the new crypto newsletter by FXStreet! Every Monday we will bring you the most actionable stories from the crypto market to make sure you are well-prepared for the trading week ahead. By Akash Girimath Cryptocurrencies Lead Analyst FXStreet Heya folks, How's it going? Week one of February was swamped with top-tier macroeconomic events relating to the Fed and the US. These events triggered a spike in volatility in the short term but this week is going to be relatively silent. This week, let's take another look at the ongoing bull rally, alt season, and what to expect. Altcoins rally under two conditions Bitcoin is bullish Bitcoin consolidates after a bullish ascent, i.e., BTC dominance drops In a bear market, minor rallies are typical, but the 2023 rally has pushed many altcoins to do a 3x in less than a month. Clearly, we are in an alt season.  So far, there have been two major alt seasons, three if you include the ongoing one.  While the first one took place in Q4 2021 when the entire market was in a bull run, the second could be attributed to Ethereum's Pre-Merge hardfork rally. The ongoing alt season is surprising, but there is a common denominator during alt seasons – a drop in Bitcoin dominance. Although BTC dominance is on the decline, altcoin dominance is relatively stable. If this trend continues, altcoins are likely going to pump like in the game of musical chairs. Bitcoin price, however, is showing signs of weakness on multiple timeframes and will be the ultimate judge of whether this fun will continue or end. Alt season Bitcoin's role in culling the alt season Bitcoin price shows a cluster of hurdles on multiple timeframes at $25,000. While a surprising push up to $25,000 is possible, a breakdown of the $23,000 support level will trigger a correction that could extend as low as $18,600. This move will definitely dent the altcoin season, but a further correction in BTC could put an end to this bull rally. Investors need to note that the big picture is still bearish. The last lower high at $25,205 is still unconquered. In the event that BTC produces a higher high above $25,205, triggering a spike in buying pressure from sidelined buyers and potentially kick-start a run-up to $25,000. BTC/USDT 3-day chart   An unusual spike in the NFP numbers last week and a stronger US Dollar could pose a risk to the ongoing rally in Bitcoin price. As US Dollar bounces off 101, a retest of 105 and a potential push above this level is likely and could threaten the crypto bull rally.  Therefore, investors need to be cautious with the ongoing bull rally and not push their risk, especially when they know that the music could come to a stop at any moment.   RELEVANT STORIES  Top 3 reads Why Bitcoin is still in a bear market and what this means for BTC price Ethereum devs finalize fork on the Zheijang testnet, here's what it means for ETH XRP news: LBRY joins Ripple supporters to list remittance token on Coinbase Important reads Will Uniswap V3 save Binance Coin price from a brutal 20% crash? Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Is this the beginning of the end for bulls? A16z votes against proposal to deploy Uniswap v3 on BNB Chain Is there more upside to Dogecoin-killer Shiba Inu's rally after 100% gain in 90 days? Alt season to propel Shiba Inu price next; here's what SHIB holders can expect Bitcoin, Ethereum and select altcoins set to resume rally despite February slump It's time to Plan your trading week   Access Premium experts and ask them what you want. Then, program your daily alerts, read the best Forex analysis and stay up to speed of the market movements. That's the key. Plus, access instant trade notifications & alerts across all your devices.   PLAN YOUR WEEK Download our oficial app   If you liked this and you would like to follow us for more news and analysis, join us on social media                Manage your subscriptions  ·  Unsubscribe from FXStreet newsletters   FXStreet Newsletter does not constitute a solicitation for the purpose of buying or selling in the foreign exchange market. Although the information contained in FXStreet Newsletter comes from trusted sources, FXStreet is not responsible for guaranteeing the accuracy, timeliness, completeness or fitness of such sources. © 2023 "FXStreet. The Forex Market" All Rights Reserved. FOREXSTREET, S.L. - Portaferrissa 7, 1r 2a Barcelona 08002 Catalonia - Spain. You are receiving this email because you have specifically consented to it by checking the corresponding box when registering on our website. In FXSTREET we do not like receiving spam, so if you want, you can cancel your subscription or send us an email to privacy@fxstreet.com This message has been sent to you by FOREXSTREET S.L., a company registered in Barcelona, ​​in Volume 33351, Folio 135, Sheet B230633, with Tax Identification Number B62498233.