According to QCP Capital's latest market update, Bitcoin (BTC) and Ethereum (ETH) have stabilized at around $103,000 and $2,400, respectively, following brief pullbacks.
Crypto traders are shifting focus to Ethereum (ETH) and select high-potential altcoins, anticipating leadership in the next bullish wave, while Bitcoin (BTC) encountered resistance and pulled back slightly, according to QCP Capital's latest report.
After a strong run-up, BTC encountered resistance at around $103,000, leading to a minor pullback. However, the flagship cryptocurrency quickly recovered, stabilizing in the $102,000 range. Meanwhile, ETH encountered resistance at around $2,400, leading to a steeper pullback.
Nevertheless, Ethereum is showing relative strength, having pulled back less and recovering faster. This strength is attributed to growing demand for ETH options and enthusiasm around the Pectra upgrade, which saw successful execution.
As Bitcoin drops below 63% dominance, capital is shifting into altcoins, with Ethereum expected to be the primary beneficiary in the near term.
Moreover, overall market volatility is cooling, as Bitcoin's short-term implied volatility (IV) fell more than five points. Similarly, the CBOE Volatility Index (VIX) declined to 18, signaling rising investor confidence.
“The relative strength of ETH, combined with increasing options demand and the successful Pectra upgrade, sets the stage for Ethereum to become a core allocation asset in the next phase of the market cycle,” QCP added.
The report further highlighted a more favorable macro backdrop, with easing geopolitical tensions and improving global liquidity, both of which are creating tailwinds for risk assets like cryptocurrencies.
As Bitcoin consolidates and its market share shrinks, traders and investors are shifting focus to Ethereum and select high-potential altcoins, anticipating leadership in the next bullish wave.
