- Bitcoin’s bull run is at high risk of losing momentum to alternative assets as volatility increases.
- Great HODLer support is essential for maintaining a parabolic run.
This post-election cycle is unlike any before it. In the past, when Bitcoin [BTC] Entering a risky phase, investors tended to shy away.
This time, however, it has not even been a week since the results were announced, and BTC has already set three all-time highs, the last of which reached $81,000.
This Bitcoin bull run is a clear sign of the shift the crypto community is championing within the financial landscape, advocating for digital assets as a hedge against inflation and centralized control.
However, beyond its appeal as an asset class, the influence of speculative momentum on Bitcoin’s price is undeniable.
While the bulls have held their ground this past week, some key conditions need to align to keep this rally going.
If these conditions do not fall into place, a bearish pullback could not only halt Bitcoin’s bull run but also potentially wipe out the gains made thus far.
Bitcoin’s bull run could be slowing down
Two days ago, Bitcoin’s market share fell to 58.5%, with the price posting a modest daily gain of 0.19%. Ethereum, on the other hand [ETH] The dominance increased by 3%, while the price increased by 5% during the same period.
In the midst of a Bitcoin bull run, this trend suggests altcoins are gaining a significant lead, diverting attention from BTC.
Normally this shift occurs when traders seeing that Bitcoin has reached a market top and turned to altcoins as a more affordable alternative.
Source: CoinMarketCap
As a result, the impact on its counterparts cannot be overlooked, although Bitcoin’s weekly gains have been impressive, pushing it to a new ATH of $81,000, with several altcoins even approaching triple-digit gains.
Looking at the daily price chart, AMBCrypto identified another pattern that supports this trend.
While the initial momentum is fueled by Bitcoin itself, each Bitcoin bull run, as the cycle nears its end, typically sees massive capital inflows diverted into altcoins.
Source: TradingView
For example, during the March bull rally, after BTC reached an ATH of $73,000, it consolidated below that price range. However, altcoins like DOGE spiked, reaching $0.20 in less than 10 trading days.
This brings us to an important question: Is Bitcoin’s bull run nearing an end as altcoins make higher highs? Or, given that this cycle is different from the last, does BTC still have room for growth?
Key conditions needed for BTC to reach $100,000
As noted in another reportTo keep BTC unchallenged above $80,000, major HODLers must view the current price as an attractive entry point. If they do, it will be difficult for bears to push for a correction.
The reason is simple: Bitcoin’s bull run has driven it to a new ATH, leaving all stakeholders with net gains, with their average purchase prices well below current market levels.
Source: IntoTheBlock
This makes BTC more vulnerable to price fluctuations when weak hands start selling. Therefore, in the event of a retreat, the bulls will likely rely on whales for support.
Currently, the market is experiencing strong bullish sentiment fueled by the prevailing macroeconomic and political environment, which is expected to keep BTC within the $79K-$81K range.
Read Bitcoin’s [BTC] Price forecast 2024–2025
However, in order to sustain Bitcoin’s bull run and reach $100,000, it will be crucial that the aforementioned conditions align.
If they don’t, a pullback could come closer than expected, with bears regaining dominance over several markets statistics.