- Bitcoin was stable at $13,800 in the period following its rejection, with bulls gaining some momentum as the crypto currency flashed and continued to show signs of strength.
- Although BTC currently shows no obvious signs of weakness, the Altcoins have capitulated in recent days and weeks, with many of them suffering huge losses.
- Analysts now conclude that Altcoins may be in the process of forming medium-term lows. One trader comments that the risk of losses on smaller tokens is currently „extremely limited“.
- This means that today’s fierce Altcoin sales may have led many of them into oversold territory – meaning that a strong rally in recovery is imminent.
Bitcoin has recently been able to attract significant investor and financial attention due to its apparent strength.
This has been largely at the expense of the Altcoins, which have been caught in a relentless downward trend that has led investors to incur heavy losses.
There is a possibility that a further downward trend may be imminent if BTC continues to gain dominance over the market, but one analyst is not too convinced of this possibility.
He notes that the downtrend of the Altcoins is now limited – and adds that he expects the most likely scenario to be an upward breakout in the near future.
Bitcoin struggles for momentum – Altcoins continue sell-off
Bitcoin has been in a firm consolidation phase in the last few days and, after the rejection at $13,800, traded in the lower range around $13,0000. However, the bulls have slowly pushed BTC up since this rejection.
It is now being traded enormously higher at its current price of $13,750, while the rest of the market is drifting down. This strength has been brutal for old coins – especially for newer coins, which have come into focus with the DeFi bull run.
Analyst: Altcoin downtrend limited after sell-off
The last few weeks have been brutal for Altcoins, many of which have declined by 50% or more as the focus has shifted to Bitcoin.
However, one investor does not expect this trend to continue for much longer. He now notes that the downward trend of Altcoin is extremely limited.
„I could definitely be wrong, but I think that the downward trend of Altcoins is indeed limited from here. I still believe that it is going up. Although the lion’s share of my exposure has recently been BTC, I still hold a handful of alts that are dear to me and I am optimistic about Altcoins“.
While the overall future market trend depends somewhat on Bitcoin, it appears that the recent intensive sales of Altcoin could be followed by serious upside potential.