L2 Standard Bridged WETH (Blast) (weth) 
Bitcoin Surpasses $100,000 Milestone
Bitcoin has reached a new all-time high of $104,088 on December 5, after crossing the $100,000 milestone. This significant increase has sparked enthusiasm among crypto traders, resulting in substantial capital inflows to Spot Bitcoin ETFs and a surge in BTC options trade volume.
Where is Bitcoin Headed Next?
The Pi cycle top indicator predicts Bitcoin breaking past $125,494 before topping this market cycle. Currently, Bitcoin is 22% below this target, with its dominance increasing nearly 2% within two days. Rising Bitcoin dominance signals potential upside, and BTC could extend its gains.
The altcoin season is in full swing, with 75% of the top 100 altcoins outperforming BTC in a 90-day time period. The Pi cycle top indicator suggests Bitcoin is headed towards a multiple of the 350-day moving average, with rising dominance supporting a bullish thesis for the largest cryptocurrency.
Bitcoin Realized Profit/Loss Metrics
The network realized profit/loss metric on Santiment shows traders consistently taking profit on their Bitcoin holdings. Several large spikes were observed between October 8 and December 5, although it is relatively low compared to the spike noted in May 2024 when BTC price hovered around the $70,000 level. Larger and more concentrated spikes in the NPL metrics could indicate the likelihood of a correction in BTC from the increase in selling pressure across crypto exchanges.
Altcoins to Watch This Week
Blockchain.centre’s altcoin season index suggests alts could continue outperforming BTC, as they did in the past 90 days. The top five tokens to watch are Render, Sui, Pepe, Hyperliquid, and Ondo.
Render (RNDR)
Render rallied close to its March 2024 peak at $11.7613. A 35% rally from the current price could push RNDR to test resistance at $13.6330. Technical indicators, relative strength index, and moving average convergence/divergence support the thesis of price gain in RNDR. The 161.80% Fibonacci retracement of RNDR’s rally sets $16.9517 as the cycle top and price discovery target this cycle.
Sui (SUI)
SUI is nearly 20% away from its psychologically important $5 target. Sui token trades at $4.1588 on December 5, rallying alongside Bitcoin. RSI has crossed above 70, typically generating a sell-signal for traders. However, MACD could see a crossover of the MACD line above the signal line, a bullish sign for SUI.
Pepe (PEPE)
PEPE is gearing to test its November 2024 peak of $0.00002597, nearly 17% above the current price level. RSI is sloping upwards and under the 70 level, meaning PEPE is not in the overvalued zone yet. PEPE could enter price discovery once it breaks past its November peak, with the $0.00003348 target coinciding with the 141.40% Fibonacci retracement of the November price rally.
Hyperliquid (HYPE)
HYPE hit a new all-time high at $0.12875 on Thursday. The token could rally to the psychologically important $0.15000 level, nearly 22% above the current price. A successful break 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.
Ondo (ONDO)
ONDO trades at $1.74214 at the time of writing. The token is 12% away from its all-time high of $1.95063. RSI is sloping upward and shows that ONDO is currently overvalued at 86. While typically it is considered a sell signal for the token, MACD flashes green histogram bars above the neutral line, signaling underlying positive momentum in ONDO price.
Ethereum Gears for Gains
Ethereum is on an upward trend, with the altcoin potentially targeting its previous all-time high at $4,878 if it sustains 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 this cycle.
Upcoming ecosystem developments, higher utility, and adoption with layer 2 and layer 3 chains support Ethereum’s potential gains. The RSI is sloping upwards, crossing above 70, while MACD signals underlying positive momentum in Ethereum price trend on the daily timeframe.
Strategic Considerations
As Bitcoin dominance resumes its upward climb, traders are rotating capital to altcoins, XRP, and Solana (SOL) based meme coins and artificial intelligence tokens. Over $135 million in shorts were liquidated in the past 24 hours, with Bitcoin’s rally to $104,000 adding nearly 12% in open interest and 125% in options trading volume.
Traders are consistently taking profits in Bitcoin, supporting the capital rotation thesis. Ki Young Ju of CryptoQuant argues that this cycle is different from previous ones, as institutional investors buying Bitcoin have no interest in rotating into altcoins. This implies that altcoin price rallies rely on an influx of capital from retail traders across crypto exchange platforms.
Traders should watch exchange user activity and the altcoin market capitalization chart to determine the top cycle for altcoins this season. The total crypto market capitalization, excluding Bitcoin, is still 8.5% below its 2021 cycle top of $1.71 trillion. As retail traders inject capital into crypto exchanges, the market cap is expected to climb past $1.57 trillion.
For the latest news and updates on the cryptocurrency market, visit Global Crypto News. Stay informed about the latest trends, analysis, and insights in the world of cryptocurrencies.
