Bitcoin reached a high of 99,600 USD on November 26, then fell more than 8% on the 27th, briefly dropping to around 90,800 USD. Currently, Bitcoin has been oscillating below 100,000 USD for about ten days. Although it has rebounded to around 95,000 USD, the fluctuations have been relatively intense.
At the beginning of each month, the cryptocurrency market almost always has a pullback rhythm. Bitcoin is currently testing the support level near 95K. If it holds, it may continue to challenge the six-figure mark; but if it doesn't hold, it may need to drop further to see if the 90K round number can support.
Will December repeat the old routine? First a pullback and then a surge, or will it completely cleanse the market? How will altcoins perform?
Although Bitcoin has been hindered at the 100,000 USD round number, funds have clearly flowed into the altcoin market. Data shows that Bitcoin's market share has dropped to 55.25%, while Ethereum has risen to 12.74%, and the ETH/BTC exchange rate has stabilized above 0.037, while other market cap altcoin sectors have begun their performance.
With Ethereum's strong rebound, some altcoins have already seen a certain rise, so a slight adjustment is a normal phenomenon. A real bull market is brewing, and appropriate pullbacks are actually opportunities for us small investors, which will not affect the overall trend of the upcoming bull market.
Overall, Bitcoin's current market cap proportion may still have some room for retreat. Of course, this also means that altcoins may have opportunities for catch-up gains. As Bitcoin's market cap declines, the market cap of altcoins will correspondingly rise.
Secondly, various important data and events for December have gradually been announced, such as ADP, non-farm payroll, CPI, interest rate decisions, etc. Additionally, whether Microsoft will use Bitcoin as a reserve asset for the company was a key point earlier this month. If it goes through, it will undoubtedly increase market buying power, but it will also increase market volatility. In any case, this bull market is being pushed forward step by step, from Bitcoin to Ethereum, then to mainstream altcoins, and even to some established sub-mainstream coins, similar to the gradual rotation of Ripple (XRP) mentioned around 1.3.
It can be said that the altcoin bull market has officially started! Although Bitcoin is still oscillating and adjusting, altcoins are no longer following Bitcoin's fluctuations; the altcoin season is unfolding. This month, many coins will soar, and the focus is on those altcoins.
Which altcoins can continue to explode and double their market?
Taking advantage of the adjustments in BTC and the meme sector, funds are rotating into Ethereum ecosystem tokens and obscure altcoins. However, some established altcoins, such as XRP, ADA, XLM, EOS, etc., have seen larger gains, with XRP even returning to the top three in market capitalization, reaching a total market cap of 250 billion USD.
These tokens have a characteristic; after a long period of bottom consolidation, with no hotspots or concepts, retail investors' holdings have dwindled, and the big players are highly controlling the market. Therefore, even if the market cap is large, the resistance to driving the price up is relatively low.
But will this prematurely end the altcoin season? BTC has risen, memes have risen, Ethereum altcoins are also catching up, and now the old obscure coins are also starting to surge. Is the rotation reaching its final leg?
Compared to before, this cycle has added VC altcoins and meme coins, which to some extent disrupts the original rotation order, but market trends and cycles generally do not change. The surge of obscure old coins does indeed indicate market risk to some extent; when the wind comes quickly, it may leave just as fast. Especially since this round of altcoin season lacks an ecological narrative, the number of coins and overall market capitalization is much higher than the last cycle. Purely relying on capital to drive the market seems a bit hollow.
But when will the market end? It's hard to say, as it requires obvious negative news or a general short squeeze. For some old coins that have risen significantly in the short term, consider reducing positions to lock in profits.
No matter what you are trading, focus on the leaders:
MEME track: Focus on PEPE, DOGE, SHIB, PNUT, CHILLGUY, etc.;
DeFi track: Pay attention to UNI, AAVE, LINK, CRV, ENS, etc.;
Public chain track: Pay attention to SOL, SUI, ALGO, etc.
As Ethereum enters a slow oscillating upward phase, it is more suitable to look for those popular tracks that are relatively resilient against declines to buy in batches, aiming for higher yields in the upcoming rapid rise of Ethereum!
It doesn't matter if you missed XLM/XRP/ADA; focus on the market, or you will miss out on more!
