Crypto Chaos: Will Altcoins Rise from the Ashes? 😂💰

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Ah, the crypto market! A wild beast that dances to the tune of uncertainty. Just last week, it took a nosedive, plummeting by a staggering 7.58% from a lofty $3.45 trillion to a mere $3.19 trillion. But lo and behold, it has clawed its way back to a respectable $3.16 trillion, after flirting with the depths of despair at $2.81 trillion earlier this week. What a rollercoaster! 🎢

Despite the gloomy clouds hanging over the crypto landscape, a flicker of hope shines through the darkness, whispering sweet nothings of a potential altcoin season. Yet, like a stubborn mule, the total market cap of cryptocurrencies, excluding the mighty BTC, is stuck in a quagmire.

BTC: $98,683
24h volatility: 3.5%
Market cap: $1.95 T
Vol. 24h: $85.15 B

And ETH: $2,710
24h volatility: 5.4%
Market cap: $325.09 B
Vol. 24h: $58.10 B

Meanwhile, the altcoins are left gasping for breath at a paltry $883 billion. Will they muster the strength to rise like a phoenix from the ashes while Bitcoin and the market at large grapple with their own existential crises? 🤔

Bitcoin vs. Ethereum: A Tragicomedy of Price Divergence

In this grand theater of crypto, Bitcoin and Ethereum are playing their parts with all the flair of a tragicomedy. Over the past few months, Bitcoin has reached the $100,000 mark not once, not twice, but nearly six times! Bravo! 👏

But wait! With each triumphant peak of Bitcoin, Ethereum seems to be auditioning for a role in a tragedy, making lower highs. The first time Bitcoin touched the $100,000 milestone, Ethereum was basking at $4,000.

Every time Bitcoin hits $100K, Ethereum sinks lower.

— Bitcoin News (@BitcoinNewsCom) February 3, 2025

On the second attempt, Ethereum plummeted to $3.9K. By the third, it was down to $3.7K. The fourth time? A dismal $3.4K. And by the fifth peak, Ethereum was gasping for air at $3.3K. In the latest act, as Bitcoin reached the $100,000 mark, Ethereum was left with a mere $2.8K. What a tragic tale! 🎭

This divergence between Bitcoin and Ethereum could spell trouble for the altcoins. The ETH/BTC chart reveals a growing weakness, plunging from 0.03567 BTC to 0.03222 BTC. Currently, it stands at 0.02748 BTC, testing the 78.60% Fibonacci level. Fibonacci must be rolling in his grave! 📉

Yet, amidst this chaos, the oversold RSI hints at a potential reversal. Hope springs eternal, or so they say!

Ted Pillows: The Optimist in a Sea of Pessimism

Enter Ted Pillows, the crypto analyst with a bullish outlook on the impending altcoin season. In a recent post, he highlights the frequent double-bottom reversals in the altcoin market.

This bull run has definitely been different for alts.

The primary reason behind this is 1000+ daily coin launches along with top exchanges perp listing to manipulate the market.

But that doesn’t mean there won’t be an Altseason.

The current Altcoin MCap looks pretty similar to…

— Ted (@TedPillows) February 3, 2025

According to Ted, the crypto total market cap, excluding Bitcoin, has seen three double-bottom reversals since 2015. The current reversal bears a striking resemblance to the bull markets of 2017 and 2021. Who knew history could be so repetitive? 📚

Based on the RSI indicator, the altcoin season is poised to begin after a brief reaccumulation phase. The RSI line is teasing a potential bull market in the altcoin segment. Will the altcoins finally get their moment in the sun? ☀️

As the overall crypto market shows signs of recovery, the divergence between Bitcoin and Ethereum reveals the underlying weaknesses. However, Ted’s optimistic analysis suggests that if key support levels hold, the altcoins could regain their momentum, leading to a new altcoin season. Fingers crossed! 🤞

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2025-02-04 13:15