Bitcoin is on its way to Smash a New ATH, While Altcoins Test the ‘Dead Cat Bounce’ Resistance: Here’s What You Need to Know
The post Bitcoin is on its way to Smash a New ATH, While Altcoins Test the ‘Dead Cat Bounce’ Resistance: Here’s What You Need to Know appeared first on Coinpedia Fintech News
In a surprising move, the Bitcoin price soared above $68,600 in the early trading hours, which attracted acute bearish action, slashing the value by more than $1500 at the moment. The BTC price is trading around $66,600 as the technicals are going in favour of bears. However, this pullback may not prevail for a longer time, as they appear to be self-assured of hitting a new milestone any time within the next 24 hours.
Besides, the altcoins have been displaying a similar price action; it followed the 2021 bull run, which suggests the crypto market cap excluding Bitcoin is at the foothill of a massive explosion. Back in 2021, when the BTC price was on its way to mark a new ATH close to $69,000, the altcoins approached the bear market ‘Dead-Cat Bounce’ resistance zone. Therefore, a massive gap of over 140% was formed between Bitcoin and altcoins.
A similar trade setup appears to have been repeating at the moment, due to which a bullish explosion may soon set up a strong altseason.
The chart shared by an analyst, anonymously known as CryptoBullet displays that the altcoin market cap is approaching yet another ‘Dead-Cat Bounce’ resistance level. Moreover, there is also a gap of over 60% at the moment, which raises the possibility of them witnessing a similar price action in the coming days. After the BTC price marks a new ATH, the altcoins are expected to gain mainstream attention, which may outperform Bitcoin. Hence, the analyst believes,
“Whenever, BTC tests the ATHs, Alts start going berserk and vastly outperform Bitcoin,”
With this, the liquidity flow from Bitcoin to other altcoins is expected to gear up as BTC dominance approaches the edge of the rising wedge. As a result, a decent pullback may offer the altcoins an opportunity to expand and thrive to reach the milestone of a $2 trillion market cap.
Filed under: Bitcoin - @ March 5, 2024 6:12 am