【Bitcoin is about to breakout, can altcoins usher in spring? 】
Since mid-March, Bitcoin's trend has been full of volatility, with four consecutive lower highs. However, once Bitcoin successfully breaks through the $65,000 mark, it will mean a reversal of the downward trend, and Bitcoin is expected to hit the high of $70,000 again. We mentioned in our previous forecast that Bitcoin is likely to hit a new high in the fourth quarter, and now it seems that this prediction is gradually being verified.
From a technical point of view, Bitcoin did appear overbought in the short term after its rapid rise on September 9. But compared with the previous adjustment, the current medium-term reversal indicators have been fully corrected, which shows that the downward trend may be coming to an end. As these indicators gradually bottom out, the possibility of Bitcoin's breakthrough is also increasing.
If Bitcoin can successfully set a new high, those high-beta altcoins that have been hit hard may usher in a sharp reversal. Ethereum's technical side also shows a similar trend, and the medium-term indicators have also been corrected. Despite its weak fundamentals, Ethereum still has the potential for substantial growth.
After the Fed’s rate cut, the market’s preference for decentralized finance (DeFi) and high-beta tokens has become increasingly apparent. Altcoins have also performed well as a result, rising with the support of Bitcoin. Now, Bitcoin has broken through $60,000 and is eyeing the $65,000 mark. Smart traders have begun to accumulate undervalued altcoins in preparation for the upcoming rally.
As central banks around the world increase their support for their domestic economies, there has been a clear shift in the mentality of traders. Instead of focusing solely on Bitcoin and yield-generating tokens (RWA), they are starting to prepare for a potential DeFi recovery. Let’s wait and see how the market performs next!