Published
2 months ago on
February 16, 2024
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With bitcoin looking as though it’s going to go even higher, altcoins are showing signs of following this move. Although riskier plays, the altcoins have the potential to drastically outperform.
Will altcoins ride the $BTC wave?
Bitcoin is potentially gearing up for an explosive move toward $65,000 as the huge inflows from the Spot Bitcoin ETFs continue at pace. Will the altcoins take a back seat as $BTC dominates the proceedings, or will they ride on this upcoming wave and surge towards even greater gains?
Source: Coingecko/Trading View
As can be seen from the Total3 chart (total market cap of all altcoins excluding $BTC and $ETH) a breakout has now occurred. It remains to be seen now if this will continue, or if a pull back will enable the price to retest the downward trend line.
Source: Coingecko/Trading View
Bitcoin dominance still high
Bitcoin dominance is still high at just under 54%. The dominance chart shows that $BTC is fighting with the top of the resistance band that stretches between 52.3% to 54%.
If $BTC were to set off on a crazy run towards $65,000 it’s highly likely that the dominance would increase in bitcoin’s favour. That said, there are a handful of top altcoins that could buck this trend and still outperform the alpha cryptocurrency. Render (RNDR), Kaspa (KAS), and Injective Protocol (INJ) spring to mind.
At time of going to press, $BTC is pressing toward $53,000. Some of the altcoins are also stirring into life. The next 60 days going into the halving are likely to be full of volatility. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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