Bitcoins Momentum Slows: Why Altcoins Could Be the Next Big Opportunity
- Bitcoins growth may soon pause as it enters a consolidation phase, giving altcoins the chance to outperform.
- Consolidation periods often provide the best opportunities for altcoins to gain traction and attract market attention.
- Ethereum faces volatility despite recent price surges, with institutional demand needed to sustain current momentum.
Bitcoin keeps going up to its all time high, but a possible temporary pause on its growth momentum may be around the corner. Michael van de Poppe hints that bitcoin is about to close an effective consolidation phase before surmounting its prior ten peaks. During this phase altcoins are set to outperform as attention begins to drift from the unrelenting rise of Bitcoin.
Source: X
The consolidation periods are usually characterized by weeks of slow market movements, and so this period could be the best opportunity for altcoins to receive attention. When the market stabilizes the altcoins may grow more significantly and the markets attention will focus on other cryptocurrencies. Nonetheless, for many investors this may be a pivotal opportunity to revalue their portfolios and discover the world of altcoins.
Altcoins Poised for Growth
Next week might be a watershed for altcoins, especially Ethereum (ETH). According to Daan Crypto Trades, many of the most shorted coins including Ethereum were subjected to extreme price movements in the past week as a result of short squeezes. Some long-dormant meme coins experienced a whole 2 to 4 times increase in prices in the span of a few days thanks to the high short demand. These explosive moves hint at a volatility-ready market that large trade and price opportunities.
Nevertheless, these altcoins will be truly tested only after the initial price peak. Even though short squeezes can cause sharp price surges, the latters sustainability is based on sustained spot demand. In particular, Ethereum is more likely to perform better in the long term given its third place in the market and greater spot demand than other fringe meme coins.
Bitcoins Next Big Move
Although the volatility is high, some fears might poison the altcoin rally. Ethereum, for instance, has witnessed no ETF flows this week, which means there is currently no institutional interest. In order for the present price movements to sustain themselves, there will have to be increased institutional demand. In absence thereof, the momentum of the rally may falter at current levels.
Investors remain slightly dubious but optimistic, keeping their stake in Bitcoin, Ethereum and other mighty altcoins. Quite a few are anticipating a potential pullback in order to identify better entry points. As the next few days are likely to prove critical, the market is paying careful attention to demand and price action to determine if the recent upsurge in altcoins will be a long-term trend or short-lived.
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Read more: https://www.tronweekly.com/bitcoins-momentum-slows-why-altcoins-could-be/
Text source: TronWeekly
