Altcoins
Altcoins enter recovery phase as Bitcoin’s dominance wanes; Is this the bottom of the cycle?
Altcoins are recovering from Monday’s market sell-off, creating positivity among investors. Solana (SOL) has not been left out in the recovery phase, as the coin has gained 10% in the last 24 hours.
Others, such as Dogecoin (DOGE), Cardano (ADA), and Toncoin (TON), have seen a significant rally over the past 24 hours. DOGE gained more than 8%, TON rose more than 9%, and ADA rallied nearly 6%.
Meanwhile, Bitcoin fell below $59,000 today, before rising back above $61,000. Bitcoin’s dominance is waning as altcoins begin to post strong gains. While altcoin prices are normally correlated with Bitcoin prices, they appear to be diverging today based on current performance.
Analysts Reveal Potential Altcoin Rally Despite Market Crash
According to the analyst Dami Defi, Bitcoin is dumping while altcoins are pumping. He noted that Bitcoin’s declining dominance means liquidity is flowing into altcoins. He also explained that the Total 3 Indexesexcluding Bitcoin and Ethereum, it found strong support levels.
The Total 3 index shows the total market capitalization for the top 125 cryptocurrencies but does not include Bitcoin or Ethereum. This index shows a possible bullish reversal in view of the ongoing bearish trend.
Meanwhile, Bitcoin dominance dropped 2% in 24 hours, suggesting a possible altcoin season.
Likewise, crypto analyst Michael van de Poppe identified a pattern where altcoins follow BTC’s downtrend but recover when Bitcoin hits bottom. Poppe noticed that Bitcoin pairs often signal a price floor before USDT pairs. Thus, he believes that multiple signals reveal that a reversal may be near.
Poppe says altcoins are now showing strength, with some up 10% versus Bitcoin. He identified LINK as an altcoin that has also bottomed out in price. Therefore, Poppe expects the second half of this year to be better for most cryptocurrencies.
Analyst Van de Poppe expects capital rotation
Last week, Michael van de Poppe noticed that altcoin sentiment is terrible and that BTC valuations of all altcoins are reaching new lows. However, remember that the last time such price movements occurred, SOL rallied 500%, FET rallied 650%, and RNDR rallied 300%.
Based on their current performance, the analyst is quite optimistic about a future recovery for altcoins. He focused on Mt. Gox’s planned release of BTC tokens to the market in July and its perceived bearish effects. However, Van de Poppe does not believe that the release of Mt.Gox will cause further decline; rather, he expects a reversal of the trend.
He highlighted That Ethereum ETF it will strengthen the entire cryptocurrency market. Poppe says he expects fund outflows from Bitcoin and Solana into the Ethereum ecosystem once the ETFs launch.
Furthermore, he noted that when Bitcoin declines, altcoins follow but experience a strong recovery once BTC bottoms out in price. Based on his observation, Van de Poppe he doesn’t believe altcoins are still in a bear market.
BTC is down 15% from its all-time high, and Ethereum is showing a similar slight decline. However, altcoins are positioned for a rally as Bitcoin approaches the bottom of its price cycle, which Van de Poppe believes is close.
If these predictions are confirmed, altcoins could record a positive performance in the coming weeks.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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