Analysis

TOP analysts believe that altcoins could fall significantly in the short term

A prominent analyst warns that altcoins are likely to take a hit as capital flows into less risky assets.

The analyst, nicknamed Pentoshi, told his 514,000 Twitter followers that he closely monitors the Bitcoin Dominance Rate (BTC.D).

The Bitcoin dominance rate is used to determine BTC’s share of the cryptocurrency market.

The fact that it is increasing sharply shows that altcoins are depreciating faster than Bitcoin or BTC is increasing faster than altcoins.

According to Pentoshi, the BTC.D chart is looking extremely bullish after holding the 39.70% support level.

“BTC.D vs Altcoins.

Altcoins are looking weak here. BTC.D hits new high = dip in alt/BTC pair.

Believe it or not, this will be very good for the growth of the market later on.”

BTC.D 3-day chart | The source: Pentoshi/Twitter

At the time of writing, BTC.D is hovering above 43%, suggesting Bitcoin is strengthening while altcoins are slowly depreciating.

If BTC.D is showing signs of strength, Pentoshi is suspect This money will continue to move away from altcoins and seek refuge in Bitcoin.

“Alt/BTC + USD bleeds fast while BTC stands firm here. BTC.D making new highs means that money has already flowed from altcoins to BTC before the entire market flows into BTC. [stablecoin]”.

The Crypto Strategist also said that the pullback occurred on February 10th and 11th shows Weakness in the altcoin market.

“One thing I’ve learned over the years is when the market gives you a lot of opportunities to buy on support. Then it may not be supported for long. Two days ago, tweets were posted about the altcoin season. Today everything is completely gone. Many markets are at support levels which, if lost, could lead to a significant drop.”

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.