A Week In Crypto (4 - 10 Dec 2023)

Welcome back! This week we will discuss experts’ views of a parabolic Bitcoin cycle, the long-anticipated “Altcoin Season”, and the new BONK price action. Additionally, I’ve got my weekly altcoin pick and some crypto memes to cure your Sunday evening blues!

$150k BTC by End of 2024?

Most parabolic bull cycle yet?

In the ever-dynamic realm of the Bitcoin market, excitement is palpable as the year-end rally gains momentum. Markus Thielen, head of strategy at Matrixport, joins a chorus of industry experts in expressing optimism about Bitcoin's potential to reach fresh all-time highs in 2024, with some projections soaring beyond the $100,000 mark.

Historical data unveils a compelling correlation between Bitcoin's performance in the first 10 months and its subsequent year-end rally. Statistics reveal a staggering 71% chance of finishing higher when Bitcoin has witnessed at least a 100% surge by October. As we currently witness BTC's price standing strong at over $35,000, the year-to-date performance paints an impressive picture, boasting a growth of over 114%.

Several factors contribute to the positive sentiment enveloping the Bitcoin market. Anticipation surrounds the upcoming Bitcoin halving scheduled for May 2024, a significant event known for its historical impact on Bitcoin's price. Additionally, the potential approval of Bitcoin exchange-traded funds (ETFs) and the escalating interest from institutional players are driving forces behind this optimistic outlook.

However, the landscape is not without its share of concerns. Regulatory scrutiny remains a persistent risk factor, and the market acknowledges the potential impact of unforeseen events. The Bitcoin market's inherent reflexivity, where the price influences market perceptions and vice versa, adds an extra layer of complexity to the ongoing narrative.

As we approach the holiday season, investors find themselves on the edge of their seats, eagerly awaiting the unfolding chapters of this intriguing crypto saga. The Bitcoin market, known for its resilience and ability to defy expectations, keeps enthusiasts and analysts alike on their toes.

Stay tuned with us for the latest updates on this evolving narrative, where the twists and turns of the Bitcoin market are sure to captivate and surprise as we ride the waves of the year-end rally.

Has Altcoin Season Began?

Understanding Bitcoin dominance and Altcoins

Source: FX Empire

Bitcoin Dominance (BTC.D) soared to a two-year high of 55% on 4 December 2023, only to swiftly enter a pronounced downtrend afterward. This trend suggests a notable shift as investors divert their funds toward altcoins and memecoins. Understanding the impact of BTC.D is imperative in understanding potential market swings.

Between 4 December and 9 December, the global cryptocurrency market cap experienced a remarkable $210 billion surge. In contrast, BTC.D witnessed a 3% decline during the same period.

Altcoin Season Unveiled:

The ongoing market rally has sparked discussions about the commencement of the anticipated altcoin season. This phase, characterized by alternative cryptocurrencies outperforming Bitcoin (BTC) and Ethereum (ETH), typically unfolds as crypto investors seek to diversify portfolios and maximize gains.

Historical trends have indicated that during market booms, capital initially flows into BTC and ETH. As the rally gains momentum, investors gradually reallocate capital toward lower-cap altcoins and memecoins.

Investors often turn to altcoins (any cryptocurrency outside of BTC and ETH) during a market rally for two primary reasons: portfolio diversification and maximizing potential gains.

As we navigate the third consecutive month of the current crypto market rally, strategic investors are keenly observing for signals indicating the commencement of the altcoin season.

Altcoin Season Indicators:

This week, BTC.D displayed a noticeable 3% decline, suggesting the potential kickoff of the altcoin season.

Altcoins such as Solana (SOL), Avalanche (AVAX), and Dogecoin (DOGE) have surged into double-digit gains, contributing to BTC.D's decline.

The downward trend in BTC.D signifies a shift in market momentum towards altcoins. Should this trend persist, top mega-cap altcoins may experience breakthroughs to new peaks as investors allocate significant capital to these markets.

Global Market Cap Growth:

This week's cryptocurrency market valuation growth, despite BTC.D shrinking, further supports the narrative of the altcoin season initiation. Since the rally commenced around October 10, the total crypto market valuation has expanded by $590 billion. Notably, BTC contributed $333 billion (56%) to this growth, while altcoins claimed the remaining $125 billion.

Altcoins attracted over $64 billion in capital inflows over the past week. This emphasizes the evident shift, with crypto investors now allocating a significant portion, approximately 60%, of their capital toward altcoins.

As BTC.D continues to decrease while the global market cap rises, there is a growing indication that the altcoin season could fully unfold in the weeks ahead. Stay tuned for more updates as we navigate these dynamic market shifts!

What is BONK?

Solana’s answer to Dogecoin soars

Source: Coinpedia

Solana’s BONK token has exhibited a remarkable surge in its price action, delivering an impressive 1,922% growth to its portfolio since the commencement of November. Notably, from 3 - 10 December, the token added over 128.7% in value, securing its position as the second top gainer in the cryptocurrency industry this week.

Throughout November, the BONK price experienced a period of consolidation, oscillating within the range of $0.000006180 and $0.000008727 for over a month. Subsequently, the market gained traction, propelling the price to an astounding 295% surge in just one week. However, this bullish momentum encountered resistance at $0.0000034517, leading to a period of sideways trading for over two weeks. The market then regained momentum, initiating a breakout, but the rally was short-lived as the price faced rejection at $0.000005011.

In November, the BONK token entered a consolidated range, trading between $0.0000034517 and $0.0000050118. December witnessed a positive start for the token, as it has maintained a consistent upward trajectory, accumulating a gain of over 150% in value throughout the month.

The Relative Strength Index (RSI) has consistently hovered near its overbought range since the beginning of the month, indicating a robust bullish influence in the market. Additionally, the averages reveal a bullish convergence, signaling the potential for continued value appreciation in the coming days.

The burning question on investors' minds is whether the BONK price is poised to reach $0.000016 soon. A crucial determinant lies in the bulls' ability to sustain the price above the support level of $0.0000109. Should they succeed, the BONK price is anticipated to gain momentum, aiming to challenge its resistance level at $0.00001253. If this level holds, the market might endeavor to test the upper resistance level of $0.00001401 in the upcoming week.

Conversely, should bears overpower the bulls, the price might lose momentum, testing its support level at $0.000008386. If bearish dominance persists, further downward movement could lead to testing the lower support level of $0.00000501 by the month's end. As the BONK token continues its dynamic price journey, investors remain vigilant for the unfolding developments in this captivating crypto narrative.

Crypto Fear and Greed Index

Token Watch: Weekly Top Movers In the Top 100

BitTorrent (BTT)), Coin #57, 169.9%, $0.00000133   

Bonk (BONK), Coin #80, 128.7%,$0.00001233

Helium (HNT), Coin# 81, 13.1%, $5.27

IOTA (IOTA), Coin #74, -16.4% $0.281497

Kaspa (KAS), Coin #29, -10.0% $0.127154

Maker (MKR), Coin #56, -7.7%, $1,403.82

Weekly Watchlist: Interesting Altcoin of the Week

Last week, I discussed tokens within the GameFi arena that I am watching and/or have added to my portfolio. This week, my conviction in GameFi market performance during this bull run remains true. My token for this week is Ronin (RON).

According to RONIN Chain’s website, "RON is an EVM blockchain specifically forged for gaming. Launched by Sky Mavis, the creator of Web3's breakout title Axie Infinity, which has generated over $1.3 billion in revenue, Ronin is the only blockchain proven to scale a single game to accommodate millions of daily active users and has processed over $4 billion in NFT volumes. Ronin optimizes for near-instant transactions and negligible fees that enable millions of in-game transactions to occur seamlessly, making it the leading choice for Web3 games."

Pros: The small market cap of $446.7 million, coupled with a solid development team, may create the potential for a wild price increase in this bull market.

Cons: The total number of coins in circulation versus the diluted market cap lends increased potential for short-term price manipulation by whales.

Am I adding this to my portfolio? Yes. Am I expecting a price correction or pullback in the near future? Yes. Will I be buying more? YES. Should you buy RON? Please do your own research and decide if this coin makes sense for you and your investment strategy

Crypto Meme Corner

Source: Google Images

Thanks for tuning in. Have a great week and good luck! Until next week.

-The Token Mindset

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