Over recent weeks, altcoins have strongly outperformed Bitcoin. It gained some dozens of percent while Bitcoin has flatlined in the low-$9,000s. However, analysts are expecting Bitcoin could soon outperform altcoins as bullish momentum in the altcoin market begins to fizzle out.
The expected decline has already taken off. Some of the altcoin market’s popular properties are showing some poor performances within the past day. Buying volume fails to return and bearish technical form. Various analysts and fund managers anticipate specific altcoins to retrace further.
Bitcoin has done poorly over the past two to three months, relative to altcoins. As reported, many altcoins have rallied by dozens of percent within a few weeks. On the other hand, the market leader has effectively flatlined in the low-$9,000s.
Despite all this, analysts are expecting to see Bitcoin beating altcoins as bullish momentum of altcoins in the market begins stalling.
Altcoins Will “Rage Dump” Against Bitcoin as Momentum Pauses, says Analyst
Just two months ago, analysts believed that Bitcoin — and only Bitcoin will lead the crypto market’s recovery. During that time, market data indicated that there were numerous altcoins underperforming the market leader. That seemed to be the case.
The lead technical analyst at Blockfyre was the one who expected this trend to happen. That same analyst now believes that altcoins will “bring the pain” and “rage dump” against Bitcoin temporarily.
Pointing to a certain chart, he stated:
This analyst is not the only one who expects altcoins to experience a retracement in the near future.
As previously reported, a notable analyst said that the TD Sequential just printed a “buy” on a weekly time frame for the dominance of Bitcoin. This signal purportedly means Bitcoin will soon garner strength against altcoins.
It is Starting
The expectation of the head of technical analysis at Blockfyre regarding the move in the Bitcoin dominance metric has already kicked off.
There are some popular altcoins that were accounted for much of the recent rally are now trading slowly lower within the past 24 hours.
Chainlink (LINK) has shed 7% within the past 24 hours. Aave’s LEND lost 11% and VeChain’s VET has dropped a similar amount, sliding to multi-day lows.
Analysts and fund managers who are tracking the performance of these top altcoins anticipate these drops to snowball from here on. Retracements in the top players should lead to retracements for smaller cryptocurrencies because the altcoin market is somewhat correlated.