Memecoins stumble as BTC breaks $64K : Is this the end of the supercycle?
The post Memecoins stumble as BTC breaks $64K : Is this the end of the supercycle? appeared on BitcoinEthereumNews.com.
Memecoins that topped the gainers chart last week may be due for a correction. Meanwhile, low-cap assets could experience short-term gains. The second week of October kicked off with Bitcoin [BTC] breaking resistance to test the critical $64K level. This marks a strong rebound after last week’s dip, where BTC briefly touched $58K. During that phase, top memecoins posted significant surges, with some even posting triple-digit gains as capital flowed out of Bitcoin. However, many of these memecoins are now trading below their previous peaks, signaling a potential distribution phase as market focus returns to BTC. As Bitcoin resurges and most high-cap memecoins face a slump, AMBCrypto sees a pattern that suggests that the market may be nearing the final leg of the memecoin craze rather than the start of a “super cycle.” If this trend persists, a broader market cooldown could be imminent. Top memecoins are lagging behind This chart indicates that the past week marked a memecoin-led cycle, with 3 out of every 5 coins dominated by memes, each achieving over a 30% surge in just one week. This moment marked a shift; while low-cap altcoins usually gain traction when BTC hits a bottom, traders are now flocking to high-cap memecoins for high-risk, high-reward opportunities. In essence, the recent BTC correction triggered a capital flight into these larger tokens. However, as traders lock in profits, funds may soon flow into smaller, low-cap memecoins, reminiscent of altcoin surges seen after every Bitcoin top. Source : CryptoQuant SHIB, the second-largest memecoin with a market cap exceeding $10 billion, has consistently outperformed Bitcoin, posting higher daily gains during each green candlestick on the daily price chart. This surge can be attributed to a strategy employed by traders during Bitcoin pullbacks, as they shift their focus to accumulating high-cap memecoins. Notably, the…
Filed under: News - @ October 14, 2024 12:28 pm