Bitcoin Opens The Door
Bitcoin’s recent ascent to $93K might be surprising to some. However, this is very much standard practice for Bitcoin. Anyone who has been following my market-related posts over the past 6 months can attest to the current outcome being predicted. Another prediction made many months ago was strong moves into altcoins in the final quarter of 2024. We are beginning to see this. Dogecoin, now ranked 6th by market cap, rallied more than 100% last week!
This is a particularly strong move considering DOGE has such a significant market cap. It’s the equivalent of XRP rallying 100% in a week, which is incredibly unlikely. When the bulls come out, there’s no stopping them, and DOGE is a prime example. Market participants eagerly await a real altcoin season that propels altcoins to new heights. We appear to be in the beginning stages of such a move.
Patience is always an important aspect of this game, and sadly, many lack this powerful virtue. It’s been a long wait. However, the tide is beginning to turn for altcoins. Conversely, Bitcoin has enjoyed a stellar 2024 and is well-positioned to extend its gains well into 2025.
The Next Phase
What needs to be understood regarding the remainder of this bull market journey is that volatility will increase. Statistically, Bitcoin experiences 3 to 4 heavy corrections during a bull market. These corrections are typically between 30% and 50% and are usually short-lived. However, they can be quite brutal, especially for newcomers. A 50% correction is an extreme case scenario.
Investors need to be comfortable with the possibility of a 30% to 40% correction. Furthermore, this is regarding Bitcoin, altcoins will of course correct more deeply. These corrections are usually after an extended period of continuous upside. Regarding the current cycle, I would expect the next steep correction to occur anywhere between now and $120K. Current levels could also surrender to a correction.
If that were the case, I would expect a push to $95K or $98K first. This market is incredibly bullish and that is why I am more optimistic regarding a serious correction post $100K. These corrections are not reversals, but rather “breathers” before further upside. Considering the current stage of the bull market, it could be compared to the tail end of 2020 in the previous cycle.
Those familiar with the previous cycle will recall that 2021 was in fact the year that experienced the most upside and altcoin action. Similarly, we are yet to see altcoins rallying above previous all-time highs. In my opinion, the first half of 2025 should be relatively safe regarding an abrupt end to the bull market. However, as mentioned, one needs to consider the effects of a possible retaliation regarding a Trump win.
Final Thoughts
Bitcoin is again trading above $90K after briefly retreating to the $86K zone. Weekends are often boring. However, given the current state of the market, anything could happen. Many of us are waiting on altcoins to begin printing some decent gains. It’s been a tough road for many of the alts with a few exclusions such as Solana, BNB, and DOGE. Anyway, enjoy your weekend and I will see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
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