Bitcoin recovers strongly above the $96,000 mark, ETH breaks through $3,300! Altcoin season signals emerging? In-depth analysis of this rebound logic

This morning, the crypto market experienced an uplifting broad rally! According to HTX market data, Bitcoin surged back strongly past the $96,000 level, with a 24-hour increase of 4.4%; Ethereum performed even better, soaring 7.45% to surpass $3,300. More notably, altcoins such as DASH, ORDI, SATS, and others saw gains generally exceeding 20%, igniting market enthusiasm. Is this merely a brief respite in a bear market, or the start of a new bull run? Let’s analyze the driving factors behind this movement.

1. Market overview: structural highlights amid a broad rally

Today’s market shows a widespread rally, with mainstream and altcoins rising together:

• BTC: peaked above $96,000, currently at $95,391 (+4.4%)

• ETH: strongly broke through $3,300, now at $3,329 (+7.45%), leading mainstream coins

• SOL & BNB: up 4.5% and 4.24% respectively, stable at $145 and $944

• Rising stars: DASH surged 45%, ORDI up 28.4%, SATS up 26%, AXS up 24.8%

It’s worth noting that Ethereum’s gains significantly outpace Bitcoin’s, a phenomenon often seen as a key signal of rising market risk appetite. The violent surge of established coins like DASH also hints at capital flowing into second-tier blue chips.

2. Three core drivers of the rebound

1. Significant easing of whale selling pressure

According to on-chain data from CryptoQuant, long-term holders (LTH) are showing signs of exhausted selling pressure. Although daily transfer volumes this month increased from around 12,500 BTC to 24,000–27,000 BTC, the intensity of large transfers has weakened. Especially, ancient wallets dormant for over 7 years, with peaks of 1,000–1,400 BTC per hour, have begun to slow down.

As on-chain analyst Ki Young Ju pointed out: “Funds are still flowing into Bitcoin; as long as the old whales stop selling and macro sentiment slightly eases, a rebound could happen at any time.” Data shows that last week, there was still a net inflow of $2.6–3.1 billion, which is inconsistent with a trend of collapse.

2. Natural correction after oversold technical conditions

Previously, Bitcoin retraced from $105,800 to lows, with a short-term drop of over 10%, causing RSI to dip into oversold territory near 30. Such extreme conditions often involve concentrated short-selling momentum release. Currently, prices are approaching critical demand zones at $83,800–$75,000, where strong rebounds occurred twice this year, indicating solid technical support.

More importantly, this morning’s breakout was accompanied by a daily-level bullish engulfing pattern. If Bitcoin can hold above $96,000 effectively, the next target ranges from $103,000 to $115,000.

3. Improving market sentiment and macro environment

Recently, the Federal Reserve canceled the daily $5 billion SRP limit at the December FOMC meeting, allowing banks to borrow unlimited amounts against Treasuries, injecting substantial liquidity into the market. Although tech stocks remain under pressure, concerns over Fed policy uncertainty have eased somewhat.

From a sentiment perspective, Ethereum’s strong performance often precedes a market-wide recovery. A strengthening ETH/BTC ratio generally indicates:

• Increased risk appetite among traders

• Funds shifting from safe-haven assets (BTC) to high-yield assets (ETH and altcoins)

• Revival of DeFi, NFT, and other ecosystems

3. Altcoins rallying across the board: rotation or bubble?

The most eye-catching aspect of this rebound is the violent surge in altcoins:

• DASH (+45%): As an established privacy coin, its rally may benefit from market confidence spillover due to BlackRock’s crypto asset scale surpassing $100 billion

• BRC-20 tokens (ORDI +28.4%, SATS +26%): Bitcoin ecosystem tokens continue to attract capital, indicating that inscription hype persists

• Meme coins (PEPE +16.7%, PEOPLE +17.5%): Speculative sentiment has clearly warmed, but volatility risks remain

From capital flow perspective, this looks more like a “valuation correction + sector rotation” rally. Over-sold quality projects are regaining value, while Bitcoin ecosystem, AI concepts, and GameFi sectors become main targets for funds.

4. Investor strategies: opportunities and risks coexist

Short-term (1-2 weeks):

• Watch the $96,000 key level; if held, consider light positions to participate in the rebound

• ETH’s strong performance suggests focusing on arbitrage opportunities in ETH/BTC trading pairs

• Select altcoins with increased trading volume and breaking key resistance levels

Medium to long-term (1-3 months):

• Gradually build positions in BTC around $83,800–$75,000 as core holdings

• High-quality Layer 2s (like OP, ARB) and Bitcoin ecosystem tokens can serve as satellite positions

• Strictly manage funds to avoid chasing high during rebounds

Risk warning:

Despite the strong rebound, macroeconomic uncertainties remain. Fed policies, geopolitical risks, and potential regulatory changes could impact the market. Additionally, coins like DASH with a 45% single-day surge are highly volatile; ordinary investors should exercise caution.

5. Conclusion: dawn appears, but the road is not smooth

This morning’s broad rally undoubtedly injects confidence into the cold crypto market. From on-chain data, technical indicators to capital flows, multiple signals point to a “rebound rather than a reversal.” However, this does not mean the bull market has returned; it’s more likely a large-scale correction at the end of a bear phase.

For investors, the most important thing now is to stay rational, control risks, and seize structural opportunities. Market bottoms are rarely achieved in one go but are formed through repeated oscillations. Surviving this process is more crucial than short-term gains.

Interaction:

What do you think about this rebound? Are you preparing to buy the dip or watching from the sidelines? Share your views in the comments!

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry high risks; please make decisions cautiously. #Gate广场创作者新春激励 $BTC