Altcoin season begins in earnest… Ethereum and Solana rise, Bitcoin share falls

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As the cryptocurrency market generally enters an upward trend, Bitcoin (BTC) is uniquely standing still. In contrast, major altcoins including Ethereum (ETH), Solana (SOL), and XRP are showing strong momentum and shifting the market's central axis. This is seen as a result of the sharp decline in Bitcoin's market share, signaling the full-scale opening of the 'altcoin season'.

According to market research data, Ethereum recently rose by nearly 3.75%, while Bitcoin's market share dropped by about 0.62% during the same period. This signals that investors are diversifying their portfolios by withdrawing funds from Bitcoin and moving to other digital assets. The indicators for asset classes excluding Bitcoin and Ethereum in the total cryptocurrency market capitalization are showing trends similar to just before the 2017 altcoin surge, suggesting further potential for growth.

Meanwhile, the positive outlook remains valid from a long-term perspective, as Bitcoin is still on an upward trajectory. Technical analysis suggests that with the formation of a cup and handle pattern, there is potential for a rise up to $153,000. However, in the short term, it is encountering strong resistance between $120,000 and $123,000, leading to observations that a sideways market may continue for the time being.

Short-term indicators like the Relative Strength Index (RSI) suggest that adjustment is underway for a new rise after moving out of the overbought phase. In particular, a potential decline followed by a rebound near $116,700, where market liquidity is concentrated, is being discussed.

Experts diagnose that this altcoin strength is similar to a typical market cycle pattern. Traditionally, Bitcoin first leads the rise, followed sequentially by Ethereum and major altcoins, with new coins trailing at the end. The current trend follows a similar trajectory, with funds rotating across different market segments.

This trend proves that the era of Bitcoin-centered portfolios is passing, and various blockchain projects based on technological capabilities and flexibility are gradually sharing market leadership. Future movements depend on whether Bitcoin can break through the short-term resistance level, which will be a critical variable for the market's medium to long-term upward trend.

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#Bitcoin#Ethereum#Solana#XRP#CryptocurrencyMarket#AltcoinSeason

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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