Following the latest Bitcoin news revolving around the recent Bitcoin crash, and the struggle to maintain the 60k support level, highlighting the recent market downturn, analysts predict a major capital shift towards altcoins and a potential price reversal for Ethereum. With recent corrections nearing an end and BTC dominance dropping, investors should prepare for bullish movements in the coming weeks.
Market Shift Towards Altcoins
Renowned crypto analysts forecast the conclusion of the current downtrend in the altcoin market. The final weeks of the altcoin downtrend are approaching their end, and a significant capital rotation into altcoins could begin as early as this week. Analysts' confidence is based on historical trends, where similar conditions led to altcoin rallies of 300-500%.
Currently, the altcoin market is underperforming, with the BTC valuation of several altcoins hitting new lows. Despite this, analysts remain optimistic, predicting a potential 100% rally in altcoins that aligns with Bitcoin’s trajectory. The altcoin market cap is still 50% below its all-time high from 2021, and recent corrections have pushed it down by an additional 30%.
Last week marked the second-worst weekly drop in the crypto market for 2024, driven by Bitcoin crash recently on top of the falling demand for Bitcoin ETFs and uncertain monetary policies. Bloomberg data shows the top 100 digital assets corrected by 5%, highlighting market cracks amid doubts over the Fed’s rate cuts decision.
As BTC Crash and Dominance Drop, Altcoins Surge
After facing a brutal sell-off yesterday, altcoins have bounced back, renewing investor optimism. Solana (SOL) led the recovery with an almost 10% gain, trading at $136 and offsetting last week’s losses. Other popular altcoins like Cardano (ADA), Dogecoin (DOGE), and Toncoin (TON) also saw gains by an average of 5%.
The Bitcoin price correction pushed BTC under $59,000 before recovering to $61,500. However, altcoins registered strong gains with Bitcoin dominance declining by 2% in the last 24 hours. This suggests a significant liquidity flow into altcoins, with the “Total 3 Index” holding strong at support levels, indicating a potential trend reversal.
Major analysts highlighted that altcoins often follow BTC's downtrend but bounce back once Bitcoin reaches its bottom. They noted that Bitcoin pairs show signs of bottoming before USDT pairs, suggesting the altcoin bottom might be in. This development coincides with the news of Mt. Gox’s Bitcoin repayment, further influencing market movements.
Along with Solana, Chainlink (LINK) also saw a 7% increase, trading at $14. Although $15 remains a significant resistance level, technical indicators suggest the bottom for LINK might be established.
