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The Bitcoin fever has taken a heavy toll on its community members, with little indications of abating anytime soon. Bitcoin, as well as the market’s altcoins, have recently seen huge corrections.
To begin with, the former has dropped by more than 40% since reaching an all-time high in April. However, it appears that these dark gloomy clouds have calmed, at least for the time being. Santiment, an on-chain analytical platform, underlined the same point.
“Bitcoin whales aren’t slowing down their accumulation of BTC, and the uptrend of tokens held by these addresses holding 1,000+ BTC continues.” The fact that top important players are boosting their baggage is a solid vote of confidence for bulls.”
While Bitcoin has risen in value, the market’s altcoins have portrayed a slightly different image. This is why:
#Bitcoin has jumped back over $36,000 today, while #Ethereum and #altcoins are staying flat. As a result, crowd interest in $BTC has spiked back up to 3-week highs, according to @santimentfeed data. https://t.co/MkC3HZapM2 pic.twitter.com/TQdM8zWTKG
— Santiment (@santimentfeed) June 9, 2021
Well, taking into consideration the said development, is it the right time to swap your altcoins for Bitcoin now?
In a recent YouTube video, top crypto-analyst and trader Michaël van de Poppe clarified such speculations. The Dutch trader highlighted the top altcoins to acknowledge the question at hand.
The world’s largest altcoin, at the press time, was trading just under the $2,500-mark. After having seen a surge of around 3.5%, some corrections came to be. Even so, bullish sentiments remain, with the same underlined by the following tweet which read,
“So far, so good for Ethereum. It is just consolidating in the BTC pair. Doesn’t mean that Altcoins are dead. You shouldn’t be swapping altcoins with Bitcoins at this stage.”
He went on to say, “The effect of altcoins right now is because of BTC’s increased momentum.” As soon as BTC trades sideways or consolidates for a while, altcoins will increase. It’s simply a question of time till we hit a compression phase before we can start building momentum in general.”
If you look at the graph, you’ll notice that the region between 0.65 and 0.68 holds support. If it is unable to do so, the following support regions are drawn.
The fifth-largest coin is probably one of the most recognised coins by numerous specialists, including the Dutch dealer. Despite the fact that ADA fell by roughly 4% in the last 24 hours, the analyst remarked with reference to the plotted chart below,
“Finally getting into the endpoint of entry. This shows why you should always avoid FOMO in general.”
Having said that, what caused the altcoin plunge? Was it FOMO? Bitcoin’s rise? Or both?
Great bounce on #Bitcoin, but now looking for a breakout above the critical area around $35,200.
Nothing special. pic.twitter.com/GeyZ7fpTrI
— Michaël van de Poppe (@CryptoMichNL) June 9, 2021
The market’s 13th largest coin saw a significant hike in the price action. It was trading around the $173-mark with an incline of 9% in 24 hours. According to the analyst,
“Litecoin might be flipping back and above but it’s rejecting resistance. So we want to hold a very critical level here in the graph around 4300 sats. Bit of a crazy market.”
It’s worth underlining, however, that Litecoin did make a good rebound on the 100-day MA here.
Right now the focus is on Bitcoin. Here are two scenarios that could pan out,
“If Bitcoin remains flat for a while, altcoins are gonna bounce back up again. BUT, if it breaks above the $40k level, in the later stage or maybe next month, one shouldn’t be targeting the altcoins probably because they’ll be crashing down, compared to the equivalent BTC pairs.”
So, should you swap your altcoins for BTC now? According to Poppe, “I don’t think so.”