Bitcoin pauses & Altcoins run
Bitcoin has taken a bit of a pause, holding just 3% below the all-time high reached a week and a half ago. This is an encouraging sign, especially considering the massive 50% rally over 15-20 trading days earlier. Surprisingly, there hasn’t been the kind of sell-off you might typically expect after such a rapid climb.
Bitcoin hasn’t breached last week’s low at 91k—a level that seemed probable to reset market sentiment after the strong upward move. Even a 10% pullback would have been considered normal, yet the market has shown resilience, holding strong instead of dropping. This consolidation suggests the potential for further upward momentum.
A Path Toward New Highs
Historically, when Bitcoin goes on its typical run, the majority of the gains come in short, intense bursts. Most people become impatient and start to rotate into altcoins that are pushing higher at that time. What happens next is they watch Bitcoin push higher again into new highs, while their altcoin positions lag behind. If only they were a little more patient. The current environment feels like one of those moments where holding beats trading.
Now, the key psychological level of $100,000 has already proven to be very important. Breaking through this resistance could take time, potentially extending into early next year. I don’t see this as an issue, because the longer Bitcoin coils below its all-time high, the bigger the next push will be. And once that push comes, don’t be surprised if altcoins temporarily lag behind again while Bitcoin dominance surges.
Bitcoin vs Altcoins
Pauzes like this are a natural part of the bull market move. In fact, if you look at the past history of Bitcoin, 20% to 30% drops during the bull market are very normal and to be expected. This keeps the broader trend bullish, knowing the limited supply of Bitcoin on exchanges and steady accumulation by institutions and long-term holders.
Altcoins have also started to shine during Bitcoin’s consolidation. Historically, it takes a few weeks of Bitcoin holding steady at all-time highs before market participants shift focus to more speculative assets. That transition is now underway, with several altcoins outperforming Bitcoin in recent weeks, indicating Altcoin Season is here.
Does that mean now is the time to buy altcoins? To be honest, I’ve already done all my buying.
XRP, ADA, TRX, BNB, SUI, and many more have been on my Top Altcoins list for a long time. I’m not saying it’s too late to buy, but personally, I’m already fully allocated.
What I am doing is selling some of the altcoins that have been running high and reallocating into another altcoins that have more upside potential.
If you have no allocation in crypto, I suggest you read the blog I wrote on eToro: “Is it still a good time to buy crypto?”
Looking Ahead
From a long-term perspective, the current four-year cycle is maturing but still has room to run. The next major high could align with the start of the new year, following the Christmas rally, with a bottom likely in late January or early February. This could reset the market and set the stage for the next major leg higher.
The market remains in the most powerful phase of the four-year cycle. While short-term corrections are always possible, the broader outlook is strongly bullish. As Bitcoin continues its climb to new highs, opportunities for altcoins to outperform will arise during periods when Bitcoin takes a pause.
Thanks for reading!
Written by Timothy Assi, a popular investor on eToro.
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I would have loved to see volume and price action on those charts. I don't understand crypto, but trade it like any other asset, primarily futures. Bitcoin does seem extended at this point. I avoid meme coins, though, as they are too noisy.