The altcoin rally may only be getting started and follows the signing of the GENIUS Act, the most significant U.S. crypto legislation to date, ushering in structural clarity for digital assets.
Speaking with Benzinga, Illia Otychenko, Lead Analyst at CEX.IO, identified three critical technical and on-chain signals driving the breakout.
"Net Taker Volume flipped positive, showing renewed buy-side aggression after months of seller dominance," Otychenko said.
He also noted that long-term holders are moving from accumulation to distribution, a phase that has historically coincided with Bitcoin's steepest rallies.
Combined with a recent Golden Cross, where the 50-day moving average crossed above the 200-day, Otychenko said Bitcoin could see a short-term rise to $132,000 and as high as $170,000 by the end of Q3.
These bullish indicators are consistent with earlier rally phases in the current cycle, including a 103% surge to $108,000 in January 2025.
Iliya Kalchev, analyst at Nexo Dispatch, echoed the sentiment, highlighting a sharp rotation from Bitcoin to Ethereum (CRYPTO: ETH) and select altcoins.
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"Ethereum is leading the charge, now at just under $3,800, up 1.6x since April," Kalchev said, adding that new institutional bids, like SharpLink Gaming's (NASDAQ:SBET) $6 billion ETH proposal, reinforce the asset's growing appeal as a balance sheet asset.
The GENIUS Act, signed into law last Friday, resolves longstanding regulatory friction in the U.S.
It establishes clear rules for stablecoins, distinguishes asset classifications, and protects developers, prompting a broader investor reassessment of crypto exposure.
The timing coincides with declining Bitcoin dominance and growing appetite for higher-beta assets such as ENA, XRP (CRYPTO: XRP), Dogecoin (CRYPTO: DOGE), and Solana (CRYPTO: SOL).
The shifting capital landscape has sent ENA up 40% in a week, XRP past $3.50, and SOL near $191, with DOGE showing renewed strength in technical patterns and derivatives activity.
Cooper Research forecasts Bitcoin may hit $150,000 by October, buoyed by continued ETF inflows and macro tailwinds.
Ethereum, meanwhile, could extend gains with analysts like Tom Lee of Fundstrat citing targets of $4,000 in the near term and $15,000 longer term.
At the same time, macro developments loom, including preliminary U.S. GDP data and flash PMIs, but traders remain focused on crypto's new regulatory footing and asset rotation themes.
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