The post Are traders ditching Bitcoin for memecoins now? Data shows… appeared on BitcoinEthereumNews.com.

Memecoins thrive when Bitcoin approaches exhaustion levels. Currently, investors are focusing on short-term speculation to maximize their returns. Typically, a good trading strategy involves entering positions at lower prices, allowing traders to maximize gains when the market recovers, rather than focusing on timing the market top. Amid Bitcoin-led volatility and crashes in high-cap tokens, AMBCrypto sees a pattern where traders might be shifting to memecoins, capitalizing on fear-driven price drops. Most memecoins in green In the past week, Bitcoin faced turbulence as bulls struggled to defend the $62K support level, ultimately retreating near $60K.  Currently trading at $60,820, the $61K mark is now under scrutiny as the next potential support, but holding it may prove challenging. In contrast, about 70% of the top 10 memecoins by market cap ended in the green during this period, with NEIRO leading the pack with an impressive surge of around 100%. This leg up suggests that memecoins may be allowing traders to maximize gains in a risk-on environment, as confirmed by the chart below. Source : Glassnode PEPE, the third-largest meme token by market cap, has been flowing back into holder wallets, indicating a potential market bottom. Historically, significant buyouts of PEPE have coincided with its price hitting a floor, often resulting in a surge the following day. If this trend holds, PEPE could be primed for a correction. This pattern isn’t exclusive to PEPE; it applies to other meme tokens as well. Traders buy low-cap assets when market sentiment is uncertain, allowing them to sell when high-potential tokens begin to recover.  Therefore, if BTC manages to hold its support without any bearish pressure, these memecoins might see a wave of profit-taking. Conversely, a rising dominance in memecoins could indicate that Bitcoin isn’t close to breaking out just yet. Investors might be looking for…

---

Filed under: News - @ October 10, 2024 2:25 pm