Bitcoin has reignited its bull run with a spectacular surge, breaking above $97,000** and marking its highest level in months. This powerful move has sent shockwaves through the crypto derivatives market, liquidating over **$680 million in leveraged positions, predominantly from overconfident short sellers caught off guard.
Altcoins Steal the Spotlight
While Bitcoin’s dominance is clear, the real action has been in the altcoin arena. Tokens like DASH, OP, and ENA skyrocketed more than 10%, with DASH recording its most significant daily gain since 2021. The rally extended to memecoins as well, with PEPE and BONK posting impressive gains of 12% and 9.5%, respectively.
This “altcoin season” signal suggests traders are rotating capital into higher-risk, higher-reward assets following Bitcoin’s strong performance.
Market Indicators Flash Mixed Signals
Despite the euphoria, caution is advised. Key metrics suggest the market might be entering overextended territory:
· The average Relative Strength Index (RSI) for major tokens like BTC, ETH, BNB, and SOL is nearing or in "overbought" zones.
· This raises the possibility of near-term consolidation or profit-taking, especially around the volatile U.S. market open.
However, not all signals are warning signs:
· Futures Open Interest has risen steadily, indicating new capital inflows.
· Funding rates remain at moderately bullish levels (~10%), suggesting the rally isn’t yet driven by excessive leverage.
Derivatives and Options Activity Heats Up
The options market reveals where traders are placing their bets:
· There’s concentrated activity in Bitcoin call options at strikes of $96,000, $98,000, and $100,000, showing strong bullish sentiment for higher prices.
· However, put options still trade at a premium to calls for medium-term expiries, indicating hedging and underlying caution.
What’s Next for BTC and Altcoins?
All eyes are now on Bitcoin’s ability to hold $97,000 as a new support level**. If it consolidates successfully, the path could open for a test of the critical **$100,000 psychological barrier.
A stable Bitcoin above this key level would likely fuel further altcoin rallies as the search for alpha and speculative momentum continues. Traders should watch the U.S. trading session for potential volatility spikes and monitor RSI levels closely.
The bottom line: The bull market is charging ahead, but with stretched valuations, smart risk management is essential.
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Disclaimer: This content is for informational purposes only and not financial advice. The crypto market is highly volatile. Always conduct your own research (DYOR) before making any investment decisions.
