Altcoins that run the risk of “blood flowing into a river” as Bitcoin creates new ATH
Analyst DonAlt says the altcoin market could face some trouble as Bitcoin is so close to ATH and is more likely to hit new highs. Altcoins
Write in the newsletter Technical roundup Recently, DonAlt said the launch of the Bitcoin Futures ETF fund was not a “Sell the News” event. Instead, he may see Bitcoin in the middle of a strong upward move.
“Overall, I think it is more likely that a new all-time high will be hit … and any decline in support regained, particularly the daily and weekly confluence areas of $ 56,000 to $ 58,000, both opportunities before new highs.”
With Bitcoin and Etheruem well on their way to hitting all-time highs, DonAlt says he is under no obligation to open positions in the altcoin. He believes the two most important crypto assets will pull capital out of the altcoin market and bleed it to death.
“First, if Bitcoin breaks out, I would expect altcoins to sell out as the owners want to join the movement. This will likely result in a cascade of short term liquidations and build a really nice backlash when the bitcoin breakout stops printing green candles.
Therefore, buying altcoins with the expectation of a brief upturn at the end of the liquidations is an idea for the professional that I am closely monitoring. “
Trader says that if bitcoin ends up breaking out and consolidating in a row, altcoins could become more attractive.
“In short, ignore altcoins as Bitcoin will likely be printing large candles (hopefully green) any moment. If so, altcoins on a bounce back basis or on a massive rollover will be attractive when things calm down.
Now is a good time to research coins, ecosystems, create watch lists, mark potential levels, etc., to look for discounts if the market is too fertile.
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According to Dailyhodl