The market is becoming euphoric, yet most people remain bearish.
It's crucial to determine whether the long-awaited altseason has begun or if we're facing another bull trap.
Opinions are divided into two camps:
- Those who believe Trump's arrival signaled the market's rise
- Those who think we are in for another dip
Both perspectives are reasonable. Let's explore them further.
● Pump & Altseason
Donald Trump's victory has sparked optimism in the market, prompting big players to push prices upward.
Bitcoin's dominance has dipped by just over 1%, yet altcoins are showing real strength. Tokens like $DRIFT, $SUI, $GRASS, and others continue to set new records.
This could be seen as a testing phase. If significant liquidity flows into the market, the growth may persist.
Another growth factor is the large volume of short positions. Over $300 million was liquidated just last day. Many major traders, relying solely on tech analysis, continue to predict a decline and are accumulating short positions, which ironically supports upward momentum.
● Another dip
Geopolitical instability persists, and this week's growth in crypto may be seen as "probing" by big players.
Before committing to a big push, these players need to gauge whether people are ready to dive enthusiastically in crypto.
If the liquidity flow doesn't meet these big players' expectations, we could witness another downturn. It's too soon to discuss Bitcoin's 40% market dominance.
● Summary
As you can see it's premature to discuss full-blow altseason or another drop. However, we might see developments next week that clarify which scenario will unfold.
➜ If you weren't afraid and built up positions during the dips, you will win.
➜ If you were afraid to buy, buying now is a 50/50 game of probability.
