Home News Bye, altcoin season? Traders rotating back to Bitcoin after $30K ‘reset’

Bye, altcoin season? Traders rotating back to Bitcoin after $30K ‘reset’

600
0

Investing in altcoins is mostly considered a retail phenomenon. Like cheap stocks, they are often driven by individual investors looking to make huge profits.

Polkadot, Binance Coin, and, of course, Ethereum became the leaders of the altseason. Cardano and Dogecoin should also be highlighted as two assets that showed three-digit gains, beating Bitcoin itself.

Although Bitcoin initially dropped to $ 30,000. Most large-cap altcoins also lost some appeal after Bitcoin recovered to $ 40,000, but continued to shrink BTC dominance.

Analysts said that Bitcoin needs to overcome the $ 46,000 mark to avoid another fall in price.

Most of the alternative coins have shown significant gains over the past few days. However, the situation has changed. If the original cryptocurrency falls, then the rest of the cryptocurrency market goes down. Whenever BTC goes through another crisis, it invariably drags its little siblings down to the bottom with it.

Negative news on Bitcoin is putting pressure on the entire digital asset market, while bad news about altcoins is likely to lead to market growth being driven by falling value of outsider tokens.

It is impossible that nothing happens on the cryptocurrency market

The cryptocurrency market is designed in such a way that nothing can happen on it. And since the price of Bitcoin for a long time remained in one place, then altcoins decided to use this. So, Ethereum was setting new all-time highs. Other altcoins have also had success.

Now the situation is as follows: some traders changed their shoes and no longer see the previous growth. Their main argument is that the Bitcoin price is dropping lower and lower and has already tested support levels several times. This means that sooner or later they will not stand it.

Those who are on the side of the bulls, on the contrary, pay attention to the fact that when the price moves down, the reversal occurs earlier. And this is a good bullish signal.

In addition, we must not forget: no matter how successful an altcoin looks, it strongly depends on the Bitcoin rate. If Bitcoin goes down, then altcoins will follow, and their fall could be more serious.

Capital returns from altcoins to the Bitcoin market

Bitcoin’s dominance over altcoins dropped from 73.5% to 40.5%. However, capital is now returning to the Bitcoin market. Many companies invested in the first cryptocurrency, for example MicroStrategy recently invested $ 10 million in Bitcoin.

Undoubtedly, the appearance of large capital on the crypto market will contribute to the growth of the value of Bitcoin and other attractive coins.

Institutional money differs significantly from retailer money. It is retailers who strive to fix profits after each small period of growth, but large players buy assets for a long time. They protect profits through hedging – options, futures, not sales. Sales and, accordingly, strong pressure on the rate of BTC and other coins may be in the event of any serious risks in the crypto market or in the global market.

The current fluctuations in the region of $ 40,000 indicate the stabilization of the cross-rate within these limits. The current stabilization is a kind of correction. It is during such corrective movements that new liquidity accumulates, after investors have taken profits to continue the trend. Therefore, after the necessary trading volume is formed for further movement, the uptrend will continue.

If institutional capital continues to flow into Bitcoin and other cryptocurrencies, the price will recover quickly.

Previous articleThese are BTC price levels to watch next as Bitcoin breaks above $40K
Next articleBitcoin price gains 40% in a day, Cardano and Dogecoin join $42K BTC