Crypto Market Cap ATH Of $883 Billion Announces The New Altseason

The new crypto market cap ATH of $883 billion seems like it could be announcing a new Altseason of 2021 as we can read more in today’s crypto news.

The bull run was mainly fueled with the strong momentum of BTC and ETH but while many alternative crypto assets lagged behind BTC, ETH was one of few that was trailing the uptrned. Following the rally, the sentiment around the market remains mixed and some analysts say that a local top has formed. Others believe that the altseason is emerging as the crypto market cap ATH of $883 billion was reached.

If the price of BTC sharply corrects, the probability of the altseason sharply decreases and with the altcons rallying when BTC consolidates after a rally, it paints a pattern that occurs because when BTC stabilizes, investors are trying to make risk-on plays on the market. Traders could also long or short BTC with leverage but when there’s low volatility, the funding rate could be difficult for some. However, the futures funding rate is a mechanism that the exchanges use to avoid the market from swaying to buyers or to sellers only. If there’s more buyers on the market let’s say, the buyers will have to incentivize sellers through a funding fee every eight hours. When BTC consolidates, the altcoin market tends to see an increase in volume.

Some traders think that BTC will peak in the near future as well but this doesn’t mean that a correction has to occur. BTC could consolidate and show low volatility as it starts to prepare for the next run. Michael van de Poppe who is a full-time trader at the Amsterdam Stock exchange, said that the chances of a temporary Bitcoin top is growing and if it happens, altcoins will rally further:

 “The likelihood of a temporary top is becoming significant at this point. #Bitcoin dropping down intraday after reaching the second target, while #Ethereum is bouncing upwards heavily in the $BTC pair. That’s great news for altcoins in general.”

Another trader known as Altcoin Psycho stated that the history suggests that BTC will peak at the current levels and this is becoming more likely. The reversion clouds momentum indicator pinpoints the resistance and support areas which also shows that BTC is nearing its ceiling:

 “Tethered 90% of my crypto here. I have no idea what happens next. BUT, what I can say is the last time $BTC wicked above the reversion clouds was the 2018 top. Again, I have no idea what happens next. I am not shorting. But I am more than happy to tether profits here.”

There’s a huge variable that could decide whether the altseason prospers in the near term so if BTC starts correcting sharply without consoldaitng, the altcoins could see some intensified movements to the downside.