Analysis

According to KOL Credible, ETH and other altcoins face downside risks amid strong BTC rally

A top analyst warns that Ethereum (ETH) and other altcoins could see lackluster performance as Bitcoin (BTC) continues to rise.

The person, who goes by the nickname “Credible” in the industry, told his 307,500 Twitter followers that he believes Bitcoin is in the midst of its fifth rally, where BTC is likely to hit a new all-time high around $80,000 .

According to the crypto strategist, altcoins will suffer in the early stages of this rally as Bitcoin will soak up most of the liquidity in the crypto market.

“This is my take on bitcoin (BTC.D) dominance right now. In short – BTC performs better in the early stages of the last bullish impulse, [và] BTC.D will hit an all-time low before this is over.”

The source: Credible/Twitter

Credible follows the Elliott Wave Theory, a technical analysis method that predicts future price movements by closely tracking market participant sentiment during each wave. In theory, the fifth wave is the last phase of the bull market.

Meanwhile, Bitcoin Dominance Ratio is a measure of BTC capitalization relative to total market cap. Looking at Credible’s chart, he expects BTC dominance to increase in the coming months, suggesting that Bitcoin price will rise faster than altcoins.

As Bitcoin recovers from a 90-day low of $32,984, Credible believes all eyes will now be on BTC.

“Slow to believe BTC will suck up all liquidity in short/medium term. So I think it’s the right move to focus on BTC now, rather than being tempted to put money into cheap altcoins.”

Credible added that he looks at the ETH/BTC pair to see how altcoins will fare in the near term.

“ETH/BTC has now closed below the key price area (blue), meaning the breakout could be a false breakout. Expect further declines and altcoins as well.”

The source: Credible/Twitter

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.