Cryptocurrency Markets Surge: Ethereum Climbs 40% in a Remarkable Recovery

In the past week, the cryptocurrency market witnessed a significant recovery in altcoins. Ethereum $2,498 , in particular, experienced a notable 40% increase on a weekly basis, sparking expectations that the altcoin season might have begun. During the same period, Bitcoin $102,908 prices also showed a positive trend, surging up to $105,000. This market dynamics were influenced by the positive progression of trade talks between the US and China.

Altcoin Resistance Levels and Possible Direction

Renowned cryptocurrency analyst Rekt Capital suggests that the altcoin market could experience a substantial breakout in the upcoming period. According to the analyst, if the total altcoin market value (excluding the top ten altcoins) closes above $250 billion weekly, it could surge to $315 billion. Rekt Capital asserts that surpassing this level would confirm the completion of the current market correction at -61% and signify the altcoins’ rebound from the bottom. Additionally, this recovery is highlighted as more resilient compared to previous market corrections.

Rekt Capital: “A weekly close above $250 billion could mark the start of a trend reversal in altcoins.”

The analyst notes that the current correction is shallower than past market pullbacks of 69% and 85%, indicating market strength. The resistance level at $425 billion is seen as weakened, with the likelihood of being breached if retested.

Another market analyst, known as Merlijn The Trader, cautions investors during this period of increasing optimism towards an altcoin season. The noticeable decline in Bitcoin’s market dominance is pointed out as it could signal capital flow into altcoins. However, the analyst advises investors to pay attention to timing, warning, “Exit early, or risk purchasing at peak prices.”

Bitcoin Dominance and Long-term Expectations

Positive developments concerning the US-China trade agreement are evaluated as potential catalysts for the market’s rise. Should the optimistic sentiment in crypto persist, expedited strategic capital movements are anticipated.

On-chain analysis expert Willy Woo adopts a more cautious approach to the market. Woo predicts that in the long term, Bitcoin’s market dominance will rise above 90%. The analyst forecasts that by 2030, the altcoin market capitalization will reach $10.5 trillion, while Bitcoin’s market cap could exceed $100 trillion.

Willy Woo: “Traditional crypto venture capital is losing significance as the focus shifts to Bitcoin.”

Woo highlights that major companies continue to aggressively purchase Bitcoin, prioritizing BTC over altcoins. Company Metaplanet, for instance, quickly amassed a significant Bitcoin reserve, serving as an example.

As expectations for altcoins in the cryptocurrency market strengthen, some experts still indicate that Bitcoin will retain leadership in the medium and long term. It is a common caution that investors should be careful during sudden price movements. Additionally, the importance of timing in capital rotations is emphasized. In the upcoming period, both technical indicators and global developments are expected to influence market trends.