Recently, the BTC price reached a historic high not seen since August of this year, breaking through the psychological barrier of $69,000. This milestone event has once again pushed Bitcoin to the headlines of financial media, sparking widespread discussion in the market.
BTC is about to approach the $70,000 mark
The latest Bitfinex Alpha report states that Bitcoin has continued its upward momentum over the past week, and as Bitcoin approaches the $70,000 threshold, it will face its first real resistance test.
According to AICion market data, BTC has indeed shown an overall upward trend since October, peaking at the significant threshold of $69,000, currently valued at 67,503 USDT.
Image source: AICion
The Bitfinex Alpha report states, "If Bitcoin can convincingly break through the resistance level of $70,000 and emerge from an eight-month consolidation range, it may replicate the unstoppable strong performance seen after breaking $30,000 in October 2023. At that time, BTC did not look back after surpassing $30,000."
The altcoin index shows optimistic sentiment in the BTC market
It is clear that the altcoin index has shown a downward trend since October, having dropped below 25 last week, and currently stands at only 33, indicating that the market's preference in October leans towards Bitcoin, reflecting the optimistic sentiment of market investors towards the Bitcoin market.
Image source: Internet
The Altseason Index is a tool used to measure the performance of altcoins in the cryptocurrency market. It primarily tracks Bitcoin's performance compared to the top 50 altcoins by market capitalization over a 90-day period, excluding stablecoins and asset-backed tokens. It reflects investors' relative preference for altcoins versus Bitcoin.
For example, an altseason index score of 53% indicates that the price trend of altcoins has outperformed that of Bitcoin over the past 90 days. When the index exceeds 75%, it indicates that the altcoin season has officially begun; when the index is below 25%, it indicates that Bitcoin is entering an upward channel. This index emphasizes the dominant position and market influence of Bitcoin, as well as the capital flow in the cryptocurrency market.
Based on historical experience, after a surge in Bitcoin prices, investors often reallocate the substantial profits gained from this surge to other altcoins. This flow of funds can boost the market prices of altcoins, creating a unique market phenomenon known as 'altcoin season.'
Therefore, the potential rise of BTC may also catalyze the arrival of altcoin season, making altcoins a possible investment opportunity.
Summary
Last week's strong performance of Bitcoin and the currently optimistic sentiment in the Bitcoin market suggest that Bitcoin may break through the $70,000 mark, ushering in a bull market while providing potential investment opportunities for altcoins. The cryptocurrency market is volatile at any time, and investors should closely monitor market trends, face market fluctuations rationally, and seize every potential opportunity.
