Bitcoin surpasses $100,000 what to expect from Ethereum and altcoins

bitcoin crossed the $100,000 milestone on Wednesday, reaching a new all-time high of $104,088 on December 5. Cryptocurrency traders' enthusiasm was rewarded with significant capital inflows into spot bitcoin ETFs and an increase in btc options trading volume.

Following bitcoin's rally to $100,000 (btc), traders are looking for the next altcoin to shift their focus on, expecting higher returns as the cycle progresses. Capital rotation is likely to occur while altcoin season is in play, and altcoins such as ethereum (eth), Render (RNDR), Sui (SUI), Pepe (PEPE), Hyperliquid (HYPE), and Ondo (ONDO) .

<h2 class="wp-block-heading" id="bitcoin-cycle-top-and-where-btc-is-headed-after-104-000″>bitcoin Cycle Top and Where btc is Headed After $104,000

The bitcoin Pi Cycle Top Indicator predicts a break above $125,494 before btc heads this market cycle. bitcoin is 22% below target and the domain is up almost 2% in two days.

bitcoin's increasing dominance indicates that there is more bullish potential and btc could extend its gains. Interestingly, altcoin season is in full swing, with 75% of the top 100 altcoins outperforming btc within a 90-day period.

btc is heading towards a multiple of the 350-day moving average on the Pi cycle upper indicator, and the increasing dominance supports a bullish thesis for the largest cryptocurrency.

The network realized profit/loss metric on Santiment shows that traders are consistently making profits on their bitcoin holdings. Several major peaks were observed between October 8 and December 5; However, it is relatively low compared to the peak seen in May 2024, when the btc price was hovering around the $70,000 level.

Larger and more concentrated spikes in NPL metrics could indicate the likelihood of a correction in btc due to increased selling pressure on crypto exchanges.

Altcoins to watch this week

Blockchain.centre's Altcoin Seasonal Index suggests that alts could continue to outperform btc, as they did over the past 90 days. The index helps identify whether altcoins in the top 100 cryptocurrencies ranked by market capitalization are generating gains or lagging behind compared to bitcoin.

While most altcoins in the top 50 rally alongside bitcoin this week, the top five tokens to watch are Render, Sui, Pepe, Hyperliquid, and Ondo.

The render recovered near its March 2024 high of $11.7613. A 35% rally from the current price could lead RNDR to test the resistance at $13.6330. Technical indicators, Relative Strength Index, and Moving Average Convergence/Divergence support the rising price thesis on RNDR.

The 161.80% Fibonacci retracement of the RNDR rally sets $16.9517 as the cycle high and price discovery target in this cycle.

SUI is almost 20% away from its psychologically important target of $5. The Sui token is trading at $4.1588 on December 5, recovering alongside bitcoin.

The RSI has crossed above 70, which would normally generate a sell signal for traders, however, the MACD could see a crossover of the MACD line above the signal line, a bullish signal for SUI.

PEPE is preparing to test its November 2024 high of $0.00002597, almost 17% above the current price level.

The RSI is sloping upward and below the 70 level, which means that PEPE is not yet in the overvalued zone. PEPE could enter price discovery once it surpasses its November peak; The price discovery target price for PEPE is $0.00003348.

The target coincides with the 141.40% Fibonacci retracement of the November price rally.

HYPE hit a new all-time high of $0.12875 on Thursday. The token could rise to the psychologically important level of $0.15000, almost 22% above the current price.

A successful breakout of this level could bring the $0.17689 target into play, representing the 141.40% Fibonacci retracement of HYPE's rally to its new all-time high.

Technical indicators support the thesis of a gain in HYPE price.

ONDO is trading at $1.74214 at the time of writing. The token is 12% away from its all-time high of $1.95063.

The RSI is sloping upwards and shows that ONDO is currently overvalued at 86. While normally considered a sell signal for the token, the MACD shows green histogram bars above the neutral line, indicating underlying positive momentum. in the ONDO price.

<h2 class="wp-block-heading" id="ethereum-gears-for-gains”>ethereum Set to Make Profits

ethereum is in an uptrend. The altcoin could aim for its previous all-time high of $4,878 if it maintains its upward momentum.

eth price needs to break above the psychologically important $4,000 level to target the previous all-time high and enter price discovery in this cycle. With upcoming ecosystem developments and increased utility and adoption with Layer 2 and Layer 3 chains, ethereum is poised for further gains.

The RSI is sloping upward, crossing above 70. The MACD indicates underlying positive momentum in the ethereum price trend on the daily chart.

Strategic considerations

As bitcoin dominance resumes its rise and .

Over $135 million in shorts were liquidated in the last 24 hours according to data from Coinglass, bitcoin's rally to $104,000 has added almost 12% in open interest and 125% in options trading volume.

Traders are constantly making profits on bitcoin, and this supports the capital turnover thesis.

CryptoQuant's Ki Young Ju maintains that this cycle is different from previous ones. Institutional investors buying bitcoin have no interest in rotating into altcoins, and this implies that altcoin price rallies depend on an influx of capital from retail traders through cryptocurrency exchange platforms.

Traders should look at the exchange's user activity and the altcoin market cap chart to determine the cycle high for altcoins this season.

The total cryptocurrency market capitalization, excluding bitcoin, is still 8.5% below its 2021 cycle high of $1.71 trillion. As retail traders pump capital into crypto exchanges, the market capitalization is expected to surpass $1.57 trillion.

The chart is key for traders looking to rotate into altcoins as bitcoin remains stable above $100,000.