The United States and China have agreed to reach temporary trade deal to boost Bitcoin and altcoins

The United States and China have reached a temporary trade agreement, and the two sides agreed to cut tariffs on each other's goods within 90 days. The news drove the cryptocurrency market and Bitcoin, which once climbed to the $106,000 level, up 10%, but then fell slightly.

As Bitcoin rises strongly and Ethereum (ETH) enters a new phase of heating, other altcoins are beginning to show similar heating trends. However, just as Bitcoin needs to overcome strong resistance levels before breaking through, altcoins are facing similar challenges at the moment.

The market usually goes through different stages of development, analysts point out that Bitcoin is currently entering its third phase with the goal of setting a new all-time high. Meanwhile, altcoins are in the second phase, preparing for their own sharp rise. Once Bitcoin reaches its peak and may cool down slightly, it is usually time for altcoins to make full use of their full strength.

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What signal indicates the next altcoin rally?

According to analyst Michael van de Poppe, when gold starts to form lower highs, it usually shows signs of weakness. This marks the beginning of a possible downward trend or horizontal consolidation of gold.

As gold cools down, more room for the altcoin market may be opened up. As traditional safe-haven assets such as gold underperform, traders and investors may turn their attention to risky assets with high growth potential in the short term (such as altcoins).

Understand the stages of altcoin gatherings

Analyst VirtualBacon pointed out that Bitcoin, Ethereum and Solana will first reach new highs. During bull markets, Bitcoin usually leads the rally by taking the lead in reaching an all-time high. Then, Ethereum and Solana usually follow closely, heading towards their record highs. This pattern marks the beginning of the past altcoin season.

VirtualBacon also stressed that many new traders mistakenly believe that the altcoin season means that small, low-market capital tokens can be invested directly. But in fact, the rise of altcoins is carried out in stages. First are large tokens such as Ethereum, Solana, XRP and Cardano, followed by medium-sized market capitalization tokens, and then smaller, more risky tokens. The rise in Ethereum is crucial for other markets including meme coins and low-cap tokens.

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