Bitcoin’s price action as of late has been firmly guiding that seen by the aggregated altcoin market. Larger altcoins like Ethereum and Chainlink have been directly tracking BTC’s price action, while smaller altcoins lag behind it slightly.
As BTC’s price continues extending its momentum, analysts are widely noting that traders may soon start jumping back into risk-on crypto assets – including those within the DeFi sector.
That said, one analyst believes that so-called blue-chip altcoins will experience notable strength first, as they were the first ones to selloff last month when the market started reversing.
The same analyst also believes that the recent DeFi bull run will play a critical role in the next bull run, as it proved that Ethereum can be used for more than being a platform for “scammy ICOs.”
He concludes that the crypto market is about to enter the “golden, fabled bull run.”
Bitcoin Rallies to Fresh Local Highs, Creating a Tailwind for Altcoins
At the time of writing, Bitcoin is trading up just over 1%. After dipping as low as $11,200 overnight, it is now trading at its current price of $11,500, marking a fresh local high.
It remains stuck below the heavy resistance laced between $11,600 and $11,800, but a firm break above this region could be all that it takes for BTC to enter a fresh bull run.
This latest push higher has created a tailwind for the entire market, with major altcoins rallying higher in tandem with BTC, while smaller altcoins – like those residing within the DeFi sector – also see some tempered momentum.
If BTC stabilizes around its current price levels or continues pushing higher, investors may be more prone to regain exposure to higher risk assets within the market.
Analyst: Crypto Market is About to Enter the “Fabled Bull Run”
One trader believes Bitcoin is about to enter its “fabled bull run” phase in Q4 of 2020.
He also contends that this will cause the entire market to skyrocket, with the altcoins that sold off the earliest over the past few months leading the next rally.
“Q4 is going to be all about macro bluechips. Always has been… Alts that sold off first (LINK) have already rebounded and are about break resistance. DeFi has proven a usecase for ETH beyond scam ICOs. The developers never stopped building, the printers never stopped printing. This is the golden, fabled bull run.”
This bullish sentiment could prove to be justified if Bitcoin breaks above the resistance that sits just above where it is currently trading at.
Featured image from Unsplash. Pricing data from TradingView.