Bitcoin price has corrected somewhat after an impressive rally towards $50,000 early last week. In this process, the leading cryptocurrency is trying to identify important support and resistance levels. altcoin The market is looking for opportunities to offer attractive risk-return opportunities in the same period.
Investors generally think that altcoins will outperform Bitcoin in bull markets and, conversely, perform worse in bear markets. In this context, an experienced investor named CrediBULL Crypto expressed his thoughts on these dynamics.
In particular, he noted that altcoin rallies do not only occur during periods when funds shift from Bitcoin to other crypto assets. Instead, it is often fueled by the inflow of new capital into the market, leading to large price increases in cryptocurrencies with small market caps, he said.
Bitcoin Market Domination and the Rise of the Altcoin Market
And also, Bitcoin‘s market dominance ratio (BTC.D) is considered a reliable sign of periods when alternative assets are gaining strength and outperforming Bitcoin. BTC.D fell to one of its recent lows of 54.03% on February 12, indicating the downward trend in its dominance.
Currently, Bitcoin represents approximately 53.62% of the total market capitalization, and this proportion is expected to decrease during the altcoin rally.
On the other hand, another experienced investor named Cevo is looking forward to the period of increased volatility and expansion of altcoins. However, he warns that future pumping and dumping activities will be “more aggressive.” He advises investors to “stay calm and make decisions with an open mind.”
For altcoins to realize their full potential, it is important that Bitcoin remains stable at its current levels. cryptocurrency Its units will most likely follow corrections that the leading cryptocurrency will experience and may delay the expected expansion period or altcoin season.
As a result, investors need to learn how to manage risk and handle their emotions about the future. The cryptocurrency market is inherently uncertain and volatile, but according to Cevo, these characteristics may become even more pronounced in 2024.
Finbold has published a list of altcoins with market caps ranging from $1 billion to $10 billion to watch throughout the year.
