Altcoins Gain Momentum as Bitcoin Struggles to Hold Dominance; Experts Urge Caution Amid Potential Correction
Summary:
As Bitcoin (BTC) faces challenges in maintaining levels above $43,000, altcoins, principally Ether (ETH), see a rise. Analysts suggest Bitcoin needs to sustain a dominance above 54.35% to avoid probable fallbacks, while it currently stands at around 53.9%. Major altcoins like ETH and Solana (SOL) capitalized on this, with ETH reaching up to $2,392 before a slight correction and SOL hitting a year high on Bitstamp. Some Bitcoin market participants remain hopeful in its price reduction for potential future gains. However, experts warn that a larger market correction may incur and suggest cautious investment decisions.
Bitcoin (BTC) had difficulty maintaining levels above $43,000 on Dec. 8, while an uptrend in altcoins, predominantly Ether (ETH), grabbed the limelight. Data collected from Cointelegraph Markets Pro and TradingView display a continuous Bitcoin price consolidation, whereas the ETH/USD pair grew by as much as 7.6 percent within a single day.
Earlier in the week, Bitcoin had reached a new 19-month peak of $44,490, but its spotlight was taken by both ETH and Solana (SOL), causing unrest amongst investors. Observing Bitcoin's fraction of the total cryptocurrency market capitalization, recognized analyst Matthew Hyland characterized recent progress as a likely "false breakout."
On Dec. 6, dominance reached 55.26%, concurrent with Bitcoin's price zenith - the highest value since April of 2021. According to Hyland, to prevent a dip, it would need to maintain support above the significant 54.35% mark.Currently, it stands around 53.9%.
Some major altcoins capitalized on Bitcoin's lagging performance, with ETH/USD edging up to $2,392 before experiencing a minor adjustment downward. In contrast, SOL/USD soared to its peak since May of 2022 at $72.88 on Bitstamp, as speculators envisaged hitting the triple digits in the future.
The research enterprise, Santiment, posited that the market's fear uncertainty and doubt (FUD) concerning an altcoin breakout could thoroughly benefit Bitcoin in the long run. It explained that while Bitcoin's momentum seems to be stalling, Ethereum and the other altcoins are seeing a sudden surge in value. FUD could potentially boost BTC to $50K, it reasoned.
Putting faith in a prospect of gaining, Bitcoin market actors observed hope in the current BTC price reduction. According to popular trader, Credible Crypto, stockpiling is underway in anticipation for Bitcoin's "next leg up."
Despite some industry experts suggesting that a more significant price correction is due, potentially pulling the market down towards $20,000 before new record highs are achieved. Please note that this article does not provide trading advice or recommendations. Every investment and strategic move entails risk, and readers should carry out their bespoke research when making financial decisions.
Published At
12/8/2023 11:23:43 AM
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