Bitcoin’s $90B Party, But Altcoins Are Waiting in the Wings 🤡

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Key Takeaways

Is the market favoring Bitcoin or altcoins right now?

Bitcoin is leading the rebound. However, altcoin leverage is capped. If BTC hits resistance, alts could grab rotation capital. 🤷‍♀️

Is this a good time to buy altcoins?

Only 24% of Binance altcoins are above their 200-day SMA, showing most alts are still in accumulation. It’s like a crypto version of “I’m not lazy, I’m just in a holding pattern.” 🧘‍♂️

The market has flipped back to risk-on. Q4 kicked off with the TOTAL market cap bouncing 3.88% off the $3.85 trillion base, representing nearly $160 billion in inflows, and marking the longest green candle since August. 🎉

Bitcoin [BTC] also saw its market cap climb 3.92%, reaching $2.36 trillion. Technically, this highlights a notable trend: BTC’s $90 billion inflow accounted for 56% of the total crypto market cap inflow. Basically, Bitcoin is the MVP of this crypto party, but the altcoins are just waiting for their turn to shine… or maybe not. 🤡

Simply put, more than half of the $160 billion rotated into BTC, showing that the rebound was BTC-led. By contrast, TOTAL2 (market cap ex-BTC) jumped 3.81%, highlighting typical rotational flows. It’s like a game of musical chairs, and Bitcoin just grabbed the last chair. 🪑

In short, traders are leaning into BTC, keeping altcoins on the back foot. 🚶‍♂️

Supporting this, the Altcoin Season Index dipped 2 points to 65, at press time, signaling rotation away from alt-season. If this momentum holds, we could be heading into a Bitcoin-led phase, keeping altcoin market share capped. The altcoins are basically crying into their pillows. 😭

However, what if BTC hits resistance? BTC.D was in the red, and BTC is down 0.16% intraday, hinting at weak follow-through. In that case, could the Altcoin Season Index rebound, sparking a rotation back into alts? It’s like asking if a toddler will stop throwing a tantrum. 🤔

Bitcoin bloodbath sets stage for a strategic altcoin entry

The crypto market experienced a sharp sell-off over the past 24 hours, triggering widespread liquidations. It’s like a horror movie where everyone dies except the main character. And guess what? The main character is Bitcoin. 😈

According to CoinGlass, 129,474 traders were liquidated, totaling $592.19 million-81% of which came from short positions. This means nearly $490 million was wiped out in short squeezes, fueling a rapid price surge. 🚀

Bitcoin bore the brunt, with $423 million in short liquidations, accounting for 81% of the total. Despite this, Bitcoin’s Open Interest (OI) remains near all-time highs, indicating that the derivatives market is still highly active and heavily leveraged. It’s like a superhero who’s been through a lot but refuses to quit. 🦸‍♂️

Meanwhile, Ethereum [ETH] leverage sits about $10 billion shy of its ATH. It’s like being 10 steps away from the finish line but still having to run a marathon. Not great, but not a total disaster either. 🏃‍♂️

Why does this matter? With Bitcoin leading the rebound, traders are aggressively piling into BTC. This is keeping altcoin leverage capped and limiting excessive risk from spilling into the broader alt market. It’s like a parent telling their kids, “No, you can’t have dessert before dinner.” 🍬

In this context, if Bitcoin runs into resistance, alts could grab the spotlight, especially with the Altcoin Season Index sliding back toward the 60 support, setting up a potential rotation into altcoins. It’s like a game of chess where the altcoins are waiting for their move. 🎲

Alts in accumulation zone – Buying opportunity ahead?

CryptoQuant points to a strong altcoin buying opportunity. 🎯

With positioning under control, euphoria cooling, and the Season Index holding key support, the setup screams “dip-buy,” especially with Bitcoin derivatives still overheated, capping long-term upside. It’s like a “Buy Low, Sell High” mantra, but with more crypto jargon. 💸

On-chain data backs this up. Only 24% of Binance altcoins are above their 200-day SMA. In other words, 76% of altcoins are still trading below their long-term trend, indicating a potential accumulation zone. It’s like a crypto version of a savings account, but with way more potential for growth. 💰

Historically, altcoin tops line up when 100% of alts are above their 200-day SMA, marked by the blue/purple long peaks. In short, the market is still far from altcoin euphoria, leaving plenty of room for accumulation. It’s like the crypto equivalent of “There’s still a lot of work to do, but we’re on the right track.” 🚀

In this context, the rotation thesis only gets stronger. It’s like a “We’re not done yet” sign, but with more Bitcoin and fewer actual words. 📢

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2025-10-02 20:15