Bitcoin surges to $120,000, is the familiar altcoin rotation drama about to begin?

Author: VirtualBacon

Compiled by: Tim, PANews

Original Title: Historical Signal Reappears: After Bitcoin reaches $120,000, how will the altcoin rotation script unfold?

PANews Note: The content of this article is solely the author’s personal opinion and does not constitute investment advice. DYOR.

Bitcoin reached a historic high of $123,000, but when will altcoins pump?

I have traced back the last three Bitcoin breakout trends to find patterns, and now the signal has finally reappeared.

What will happen next with ETH, SOL, XRP, and other mainstream coins?

Bitcoin is in a price discovery phase, but altcoin momentum is stagnant, and large-cap cryptocurrencies have yet to start.

Let’s see what will happen after the market breaks through?

Since mid-2023, every time Bitcoin breaks through the market, it triggers a collective rebound of altcoins:

• 30,000 USD → 44,000 USD
• $45,000 → $71,000
• $71,000 → $105,000 (after Trump’s victory)

Each time there is a breakthrough, altcoins will experience an explosive window of 3-5 weeks, followed by Bitcoin entering a consolidation phase, regaining its dominance, and the gains of altcoins being devoured.

Now, we are in a similar plot:

Bitcoin has broken through the resistance level of $107,000, currently rising to $123,000, and may challenge the $150,000 mark.

If historical patterns hold true, we are currently at the starting point of a new round of altcoin season.

But be cautious: this is not a half-year-long altcoin carnival, but a sprint.

Bitcoin’s dominance has not broken through key levels, so this is not a full altcoin season.

If Bitcoin’s dominance does not rise anymore, altcoins will still increase. This is exactly what happened in the last two rounds.

The trends of the three major cryptocurrencies, Ethereum, Solana, and XRP, have shown significant divergence.

Ethereum lagged significantly behind Bitcoin at the end of 2023, but each subsequent pullback has seen higher lows.

Solana initially led strongly, but its momentum is now nearing a halt.

XRP initially performed weakly, but saw a explosive rise after the U.S. elections last year.

Signs of capital rotation have become evident.

A notable phenomenon currently is that payment tokens have been launched first:

XRP, XLM, HBAR, IOTA, ALGO, XDC

The “bank token” compliant with the ISO20022 standard is first gaining favor from funds.

The large-cap cryptocurrencies that have not yet launched will be my focus.

• BNB: The exchange rate against BTC is approaching historical cycle lows.
• LINK: Continues to bleed but the fundamentals remain strong
• ADA: Is forming a long-term double bottom pattern.
• TRX: Ready to take off
• DOGE: Always able to explode during Bitcoin breakthrough cycles.

These are the core rotation targets.

If Solana starts to gain funding favor, its ecosystem tokens are worth paying attention to:

BONK has surged by 89%, and PENGU has become the favorite meme in the crypto Twitter community.

Layer 1 Copycat Relay: Sui, Aptos, AVAX (not launched since November 2023)

TAO and PEPE performed brilliantly in 2023:

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

They demonstrate a strong narrative when Bitcoin rises, and if a new “shiny narrative” emerges, we need to act decisively.

What is my current trading plan?

• Focus on blue-chip tokens
• Looking for unlaunched cryptocurrencies
• Switch to a strong narrative when leading projects start.
• Temporarily avoid small-cap cryptocurrencies, not worth the risk.

The key is capital rotation; do not blindly chase after rising prices.

Altcoins may experience a strong cycle lasting 1 to 2 months, but history always warns: take profits when you can, and do not be greedy.

If Bitcoin surges to $150,000, the top 20 cryptocurrencies by market capitalization may collectively rise, and some assets could see a significant rebound.

Operate rationally, hold strong tokens, and decisively abandon stagnating assets.

Maintain a bullish mindset, and don’t get caught up in blind euphoria. Keep a close eye on Bitcoin’s dominance and observe the activity of BTC trading pairs.

Although it is not the frenzied cycles of 2017 or 2021, it is still a solid and reliable window period. Small-cap cryptocurrencies will eventually rotate, but the timing needs to be right.