Bitcoin in ‘melt-up’ phase, altseason can soon start, but beware of ‘blow-off top’

A lot of new financial terms appeared in the global media this week. By now, even well respected outlets such as the New York Times, Bloomberg, the Wall Street Journal and the Financial Times are convinced that Bitcoin can soon reach $100k. At this moment we are apparently in the ‘melt-up’ phase, if Bitcoin does indeed go to $100k then ‘altseason’ will normally start shortly after that and then we risk a ‘blow-off top’. We’ll go over them all.

Melt-up

For about a month now, renowned media sites have been talking about a ‘melt-up’, which is actually just the reverse of a ‘meltdown’. Instead of everything falling very quickly, the prices of technology and crypto-related stocks are rising rapidly thanks to the Trump victory. This week the Wall Street Journal admitted that we are in such a ‘melt-up’ phase, also for Bitcoin.

Altseason

Several analysts are also convinced that a price of $100k per Bitcoin could soon become a reality. If that is achieved, altseason will normally start a few days later because new investors will be attracted to smaller crypto coins that appear ‘cheaper’.

The definition of altseason is: if 75% of the top 50 coins performed better than Bitcoin over the last season (90 days) it is Altcoin Season. Excluded from that top 50 are Stablecoins

If this happens, memecoins can rise very quickly (note, they can also fall very quickly during the ‘blow-off’ phase.

Blow-off top

Finally, there is a warning over a possible ‘blow-off top’. After the euphoria of a Bitcoin price of $100k, some analysts believe that a sell-off phase will follow (just like what happened in January this year when the ETFs were approved, for example). Some are already talking about a support zone around $70,000, which would indicate a possible fall of 30% for Bitcoin.

It is not clear whether it all turns out to be true, but it is certainly interesting to read.