A firmly followed crypto analyst says that the altcoin market might be in for some pain as Bitcoin (BTC) takes steps to take the show. Writing in the most recent TechnicalRoundup pamphlet, the pseudonymous analyst known as DonAlt says that the new dispatch of the Bitcoin futures exchange-traded fund (ETF) was not a “sell the news” kind of event. All things considered, he considers Bitcoin to be reasonable being in a middle of a strong upward move. With Bitcoin and Etheruem (ETH) on the cusp ever highs, DonAlt says he’s not compelled to open any positions in altcoins. He accepts that the major crypto assets will lure capital away from the altcoin markets and cause them to bleed out.
“First, if Bitcoin breaks out, we expect a puke in altcoins as holders sell them to catch the move. This will likely cause a liquidation cascade in the short term and set up a really nice mean reversion play for when the Bitcoin breakout stops printing .
“Overall, our view is that new all-time highs are likely… and that any dips into reclaimed support, specifically the confluent daily and weekly area around $56,000-$58,000, are opportunities to position for new highs.”
As such, for experienced practitioners, buying the turbonuke in altcoins for a short-term bounce as the liquidations settle is an idea we’re following closely.”
“To summarize, we don’t like altcoins as long as the majors look like they’re going to print big candles (hopefully green ones) at any moment. If they do, altcoins will become attractive either on a post-liquidation bounce basis, or on a larger rotational basis once the dust has settled.
The trader says that altcoins could become more attractive once Bitcoin finishes its breakout and consolidates into a range.
Now is a good time to do your research on coins, ecosystems, compile watch lists, mark levels, etc. in search for some discounts, should the market be so generous.”
News Summary:
- Altcoins Could Last As Bitcoin Moves To New Highs: Crypto Analyst
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