Crypto Bull Run Gains Momentum, Here’s When Altcoin Season Might Start

Bitcoin has officially broken past the $118,000 mark, hitting a new all-time high. Crypto analyst Virtual Bacon believes this is the beginning of a major bull cycle. However, he warns that altseason has not yet arrived.

Here’s what’s happening, what to watch for, and why investors should stay patient.

Bitcoin Bull Run

Over the last seven days, Bitcoin has climbed 8.8%. So far this month, the price has jumped nearly 10%, touching a new all-time high of $118,000.

Virtual Bacon considers this breakout a major bullish signal and believes it marks the start of a new bull market. He points out that Bitcoin typically leads during early bull phases, with altcoins following once liquidity shifts.

“Bitcoin’s breakout confirms the beginning of a new cycle,” he wrote on X.

Bitcoin’s current support levels:

• 50-week Simple Moving Average (SMA): $86,982
  
• 20-week SMA: $96,719 (a proven dip-buying zone)

Altcoin Season Is Close, But Not Confirmed

Bitcoin dominance currently stands at 64.58%, down from 65.50% on July 1. While this slight drop is a good sign, altseason typically begins after a sustained fall in BTC dominance.

Virtual Bacon points out early indicators:

• Ethereum’s price against BTC has jumped 10.53% this month
  
• ETH/BTC now trades at 0.02516, up from 0.02276
  
• A strong weekly close above 0.024 could signal a true breakout
  

From July 5 to 10, ETH/BTC surged by 9.49%, although it saw a minor correction of 1.08% afterward. The strength in ETH and SOL is encouraging, but not yet a confirmation of full altcoin rotation.

Fed Quietly Injecting Liquidity into Markets

A major factor supporting the crypto rally is the Federal Reserve’s quiet liquidity injection. Virtual Bacon outlines two major moves:

• $11 billion repo injection on June 30
  
• A proposal to reduce the Supplementary Leverage Ratio (SLR) for large banks.

These actions boost bank reserves and allow for more lending, which increases liquidity in the broader financial system.

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Additionally, the Global Liquidity Index is making a higher low. If it breaks above its April and September 2024 highs, it could confirm expanding liquidity—another condition needed for altseason.

The next FOMC meeting is scheduled for September 17. Reports suggest there is a 64% chance of a rate cut in Q4 2025, which could further fuel crypto momentum.

Final Thoughts: Wait for Confirmation Before Diving Into Altcoins

While Bitcoin’s breakout is undeniable and the early signs for altcoins are positive, Virtual Bacon advises caution. A confirmed altseason requires:

• Sustained BTC dominance drop
  
• Breakout in ETH/BTC
  
• Full expansion in global liquidity
  

Investors are advised to avoid jumping into low-cap altcoins prematurely. Instead, focus on large-cap coins showing early strength and wait for more macro confirmation.

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