Bitcoin tailwind, traders now also turn to Altcoins
The price of Bitcoin has started to consolidate after its huge increase in the last 48 hours.
Yesterday afternoon, BTC recovered to $13,200 before encountering strong resistance that forced it to fall.
Contrary to the trend seen during volatile upswings, Bitcoin Up did not return to its recent rally with much intensity after its rejection at these highs.
This suggests that the bulls are currently in control of the asset – and it could indicate that further rallies are imminent.
One analyst comments that he is taking some steps to hedge his Bitcoin exposure – by buying Altcoins.
Bitcoin and the entire crypto market are caught in a steady upward trend. While BTC was initially the only asset to recover, Altcoins are now catching up as they follow Ethereum upwards.
This latest price move differs from the rallies seen in the past because it is driven by a combination of immense technical and fundamental health.
It is important to note that it has also enabled BTC to break its previously strong correlation with the equity market.
One analyst believes that Altcoins could start outperforming Bitcoin in the near future. He notes that they look increasingly „attractive“ after their overnight rise.
Bitcin is beginning to consolidate while Altcoins are recovering
After the slight rejection of Bitcoin at $13,200, the Altcoin market has seen a significant recovery.
Much of this is due to the sharp drop in Ethereum’s price to over $400. This has led to massive capital inflows into smaller coins – and this seems to be rekindling the „old coins“ that were virtually suspended due to the recent sell-off of several weeks.
If Ethereum continues to reach the strength of Bitcoin, it appears that the old coins could recover together.
Analyst: Altcoins begin to look „much more attractive
Regarding his thoughts on the market, one analyst now comments that he is hedging his Bitcoin investment and is starting to move capital into Altcoins.
„I have hedged my BTC long position at 12.9, believe it or not. I don’t know, I have the feeling that something is changing. Altcoins look much more attractive now. Let’s see what happens, I’m going with the flow.“
If Altcoins start to get past the moment of Bitcoin, there is a great chance that those who are in the DeFi sector will make the biggest profits, because they have sold a lot in the last few weeks.