The US and China Have Agreed to a Temporary Trade Deal, Boosting Bitcoin and Altcoins

The US and China have agreed to a temporary trade deal, which will see them cut tariffs on each other’s goods for 90 days. This has given a boost to crypto markets and Bitcoin climbed over 10% and hit $106k levels before a slight reversal.

Now, with Bitcoin leading the way with its strong upward movement, and Ethereum (ETH) (ETH) (0.00%) (0.00%) (00) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%)applying a new phase of heating up, it looks like altcoins are finally waking up too. But just like Bitcoin had to deal with tough resistance levels before breaking out, altcoins are now facing a similar challenge.

The market tends to move in phases and as explained by an analyst, Bitcoin is currently heading into its third phase, where it aims for new all-time highs. Meanwhile, altcoins are entering their second phase, preparing for a big run of their own. Once Bitcoin reaches its peak and possibly cools down a bit, that’s when altcoins usually take off in full force.

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What’s Signalling The Next Altcoin Rally

According to analyst Michael Van De Poppe, Gold has started showing signs of weakness as it begins forming lower highs. This usually signals the start of a downtrend or a period of sideways consolidation for Gold.

As Gold cools off, it could open the door for more upside in the altcoin market. With less strength in traditional safe-haven assets like Gold, traders and investors might shift their focus to riskier, high-growth assets such as altcoins in the short term.

Understanding The Phases Of Altcoin Rallies

Analyst VirtualBacon shared that Bitcoin, Ethereum, and Solana will all hit new all-time highs first. He explained that during a bull market, Bitcoin usually leads the rally by reaching its all-time high first. After that, Ethereum and Solana typically follow closely, moving toward their own record highs. This pattern has signaled the start of altcoin seasons in the past.

VirtualBacon also pointed out that many new traders mistakenly think altcoin season means it’s time to jump straight into tiny low-cap coins. But in reality, altcoins rise in stages. First, large-cap coins like Ethereum, Solana, (XRP) (0.00%) (0.00%) (00) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%)and Cardano (ADA) (0.00%) (0.00%) (00) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%) (0.00%)move, followed by mid-caps and then smaller, riskier tokens. Ethereum’s rally is crucial for the rest of the market, including meme coins and low-cap tokens, to follow.

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