Bitcoin Breaks Through 107,000 USD – Is the Altcoin Season Approaching?

Bitcoin is trading with a solid bullish trend, having surged above $107,000, rising over 5% in just two days and regaining upward momentum. The recent price increase is mainly driven by Bitcoin's dominance, which has risen to 65.3%. This increase indicates that investors are increasingly favoring Bitcoin amid macroeconomic instability and institutional capital flows. In addition, this strength is also clearly reflected in the total market capitalization of 2.13 trillion dollars, occurring just as traders prepare for the final testimony of Fed Chairman Jerome Powell before Congress.

Technical signals confirm the breakout. BTC has surpassed a multi-week downtrend line and is currently holding above the 50 EMA (104.513 USD) and the previous resistance level of 106.135 USD. The momentum remains strong, supported by the MACD crossover and a bullish engulfing pattern above the $101,400 level, laying the groundwork for further upward momentum if the price exceeds $108,738.

Breaking through that level could pave the way for prices of $110,486 and $112,081, making Bitcoin price predictions bullish. The Circulation of Altcoin: The Question When? With Bitcoin's dominance near its historical cycle highs, analysts are closely monitoring the capital shift towards altcoins. According to Rekt Capital, Bitcoin's dominance typically peaks between 67% and 71% before giving way to broader altcoin bullish phases. That threshold may be approaching. The current dominance of BTC is 65.3% The peak dominance in previous cycles: ~71% Potential breakout window for altcoins: 1–3 weeks ahead Traders speculate that if Bitcoin consolidates near its highs, funds may shift to undervalued altcoins. Despite potential short-term pullbacks, sentiment is forming that an "altcoin season" could emerge by mid-July. Organizations and ETFs Drive Momentum; Bitcoin Supported Bitcoin ETFs and corporate bonds continue to support prices. Just on Tuesday, Bitcoin spot ETFs saw $588.55 million in inflows—marking the 11th consecutive day of positive cash flow, according to SoSoValue.

Notable: ProCap BTC LLC has added 3.724 BTC following the news of a $1 billion merger. The inflow into the BTC ETF has an R² of 0.80 with the price of Bitcoin. The purchase of treasury bonds has minimal impact on the price as they are net neutral. Now it is Powell's turn at the Senate. If he hints at rate cuts, Bitcoin will be offered. If he is a hawkish type, we will see a retreat in the short term. Currently, the technical and institutional context is supportive, and the altcoins are ready to move.