Are altcoins truly facing a tough time, or will Bitcoin and Ethereum overshadow them, leading to poor performance from altcoins? Bitcoin is currently trading between $62,500 and $63,000.
According to an analyst, this range indicates a strong effort from the bulls in the last 24 hours and the formation of a “pin bar candle.” This pattern suggests a potential bullish reversal. On Crypto Banter’s The Sniper Trading Show, the analyst noted that the bulls drove the price higher as we approached the weekly and monthly close.
Analyst Sees Bullish Trends for Altcoins and Ethereum
The analyst believes that strong momentum is ahead for the market and notes that altcoins, including Solana (SOL), are also performing well. He suggests that Ethereum (ETH) might break its current trends and experience a resurgence. According to him, many altcoins, on higher time frames, appear set to outperform Ethereum and Bitcoin, showing strength in their Relative Strength Index (RSI). The RSI has recently reset at the bottom, indicating bullish divergence.
The analyst expects altcoins to see significant gains this week, potentially reaching new all-time highs. He also observes that USDT dominance is maintaining its trend, which is a positive sign. If USDT dominance breaks this trend, it could indicate that the market has hit a bottom.
He explains that the “pin bar candle” is a crucial reversal indicator, referencing past instances where such patterns led to market upswings. Additionally, he highlights bearish divergence in the USDT dominance chart, which could signal a market push downward and an upcoming upswing.
Analyst Sees Shift to Stronger Altcoins and New Meme Coin Wave
Discussing the waning hype around meme coins, the analyst expects a shift towards more substantial altcoins. He predicts a second wave of meme coins will emerge in a few months, driven by retail interest and celebrity endorsements, which will attract more participants to the market.
The analyst highlights several altcoins showing positive signs, including Cardano (ADA), RUNE, Injective (INJ), Chainlink (LINK), Fantom (FTM), Solana (SOL), and Polkadot (DOT), noting that many are forming bullish patterns. He anticipates a strong week for these altcoins, with potential gains of 20-40%.
While optimistic about altcoins, the analyst remains cautious about Bitcoin, predicting a gradual rise without expecting a dramatic move to $70,000 in the near term.
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