Bitcoin was able to surpass the significant resistance level ($109,000) on its second chart this month. The first breakout occurred on July 2nd, followed by rally and minor pullbacks, and now another move is high.
So far, the main support zone has been held firmly and continues to live out bullish hopes. If Bitcoin can exceed $106,300, you are more likely to continue climbing.
But there’s a catch.
Market veteran Willie Wu said the market is currently in a tricky, late-stage bull market zone where liquidity is unreliable as before. Woo points out that the system is bigger and more stable than its past cycles, but now it deals with a more macro-driven institutional market, which changes the game.
Why this cycle feels “flat”
In previous cycles, bitcoins and altcoins such as Ethereum, Solana and meme tokens were shot together at an explosive, short-lived rally. This time, Wu explains that the market feels “a little flat.”
Part of the reason is that a lot of capital and liquidity has been sucked out of the market by publicly traded financing companies. These companies sell Bitcoin Holdings and buy stocks in Bitcoin Holding companies such as Strategy (formerly MicroStrategy) and Metaplanet.
Related: Hidden weakness? Why the low trading volume of Bitcoin is a major warning sign
It was an ugly and inefficient loop, exhausting some of the fun and volatility from the crypto market. As Wu said, “That’s my explanation of why this cycle feels a little flat.”
How about altcoins?
When asked if Altcoins would run their turn, Woo and his research team believe it will happen.
They expect a typical rotation where money flows from Bitcoin to bigger altcoins like Ethereum, Solana, and BNB, followed by mid-cap tokens, and ultimately money flows to smaller high-risk altcoins towards the end of the Bull Run.
Related: Incoming Altcoin Bull Market: Ethereum and Defi is badly underrated, top analysts say
“It’s all cycles happening. Rotation is part of the market behaviour,” Wu said. “But this time, we may have to scale our expectations a little bit, as there are large agencies involved.” Interestingly, Wu admitted that he wasn’t playing the Altcoin game this time.
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