When will alts take off after Bitcoin reaches a new high?

Bitcoin price has broken through $123,000, setting a new historical high, but the altcoin market seems to be in a wait-and-see mode. By analyzing the past three rounds of Bitcoin breakout markets, we can discover some interesting patterns, and these signals may be re-emerging.

Let's take a look at the possible trends of mainstream tokens like Ethereum, Solana, and XRP.

Bitcoin is currently in the price discovery phase, but the alts market lacks momentum, and large-cap tokens have not yet started to rise significantly. So, what will happen when the market breaks out?

Since mid-2023, every time Bitcoin breaks through, it has triggered a collective rebound of alts:

• 30,000 to 44,000 USD
• 45,000 to 71,000 dollars
• $71,000 to $105,000

After these breakthroughs, alts typically experience an explosion period of 3-5 weeks. Subsequently, Bitcoin enters a consolidation phase, the market's dominant position rises, and the gains of alts gradually retreat.

Now, we seem to be in a similar situation:

Bitcoin has risen to $123,000 after breaking the resistance level of $107,000, and may continue to challenge the $150,000 mark. If historical patterns repeat, this could be the starting point of a new altcoin bullish cycle.

However, it is important to note that this may not be a months-long altcoin frenzy, but rather a short-term sprint. Bitcoin's market dominance has not yet broken below a key position, so this may not be a full-blown alts season.

If Bitcoin's dominance stops rising, alts are still expected to continue rising. This is similar to the trends in the last two market cycles.

The performance of the three major mainstream tokens, Ethereum, Solana, and XRP, has shown a clear divergence.

Ethereum significantly lagged behind Bitcoin at the end of 2023, but since then, each pullback has seen the bottom gradually rise.

Solana had a strong performance in the early stages, but its momentum is now nearing stagnation.

XRP initially performed weakly, but experienced explosive growth after last year's US election.

Signs of Capital Rotation Emerging

Currently, payment tokens have taken the lead, such as the "bank token" that meets the ISO20022 standard, which is gaining favor from investors.

Large-cap tokens that have not yet launched are worth paying attention to:

• BNB: The exchange rate against BTC is close to historical cycle lows.
• LINK: Although it has continued to decline, the fundamentals remain strong.
• ADA: is forming a long-term double bottom pattern
• TRX: To da moon
• DOGE: Often erupts during Bitcoin breakout cycles

These may become core rotation targets.

If Solana begins to attract funding, its ecosystem tokens are also worth paying attention to. BONK has risen by 89%, and PENGU has become a hot topic on social media.

Other Layer 1 public chains like Sui, Aptos, and AVAX (which have not seen significant increases since November 2023) may also welcome rotational opportunities.

TAO and PEPE performed outstandingly in 2023:

• TAO: Increased 14 times in 5 months
• PEPE: 6.6 times increase in BTC within 3 months

They exhibit a strong narrative when Bitcoin rises, and investors need to seize opportunities in a timely manner if new hotspots emerge.

Current Trading Strategy

• Pay attention to quality blue-chip tokens
• Looking for potential coins that have not yet launched
• The leading projects have initiated a shift towards a strong narrative.
• Temporarily avoid small-cap altcoins to control risk.

Grasping the rotation of funds is key; do not blindly chase after the rise.

Alts may迎来 a strong cycle of 1-2 months, but historical experience reminds us to take profits in a timely manner and not to be overly greedy.

If Bitcoin breaks through 150,000 USD, the top 20 tokens by market cap may collectively rise, and some assets may see significant catch-up rallies.

Rational operations, hold strong-performing alts, and decisively cut losses on stagnant varieties.

Maintain an optimistic attitude, but do not fall into blind enthusiasm. Keep a close eye on Bitcoin's market dominance and the activity of BTC trading pairs.

Although the current period may not be as frenzied as in 2017 or 2021, it is still a relatively reliable investment window. Small-cap tokens will eventually see rotation, but patience is needed to wait for the right opportunity.