Market research company Wolfe Research has published its latest report for the cryptocurrency market. Rob Ginsberg, chart analyst at Wolfe Research, expects Bitcoin to remain below $40,000 for weeks. It is also expected to fall further before its next rise. According to the report, altcoins have come into focus following Bitcoin ETF approvals. Therefore, they have the potential to outperform Bitcoin in the near term. The research company draws attention to 4 altcoin projects in the report.
“Bitcoin will see more declines before a rally!”
cryptokoin.comAs you follow from , we started the new year with the approval of spot Bitcoin ETFs in the USA. Despite high expectations for ETFs, Bitcoin ended January with little gain. Currently, it has finished the month hovering around $42,000. Rob Ginsberg, chart analyst at Wolfe Research, says Bitcoin experienced a news selling phenomenon that at one point caused its price to drop below $39,000. However, he states that he has managed to recover somewhat. According to Ginsberg, consolidation in the low $40,000 range will continue over the next few weeks. Moreover, the analyst expects further declines before a significant rally. In this context, the analyst makes the following assessment:
Even though it is up about 15% from the January 23 low, we think consolidation will continue in the sub-$40,000 range over the next few weeks. A breakout seems unlikely in the near term. … Bitcoin’s long-term overbought status has yet to truly emerge. This leads us to believe that we will see more declines over the next month or two before the next rally.
solana and these 3 altcoins are poised for short-term gains
While Bitcoin has struggled to get back on its feet, Solana and other altcoins have shown remarkable performance. Solana rose more than 550% between September and January. Despite the pullback in January, the outlook for Solana and similar cryptocurrencies remains bullish. Ginsberg highlights a bull flag forming for Solana and a positive reversal in the moving average convergence/divergence (MACD). This indicates an imminent break above $100. This trend is not unique to Solana. Regarding his analysis, Ginsberg says:
With a bull flag now forming… and the MACD turning positive again, we think a breakout to new highs from $100 is imminent. We are used to seeing Bitcoin outperform other assets. So this is pretty significant. Solana and other altcoins have risen strongly in recent months. They will probably continue this superior performance in the near term.
According to the analyst, other altcoins such as Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) are also poised for short-term gains. This shift in focus to alternative cryptocurrencies was spurred in part by the SEC’s approval of spot Bitcoin ETFs. This has increased investors’ interest in the broader crypto market.
The changing crypto landscape
Recent developments in the crypto market highlight a significant shift in investor sentiment and market dynamics. Bitcoin’s dominance is being challenged by the rise of altcoins, which are becoming more attractive to investors looking for faster and potentially larger returns. This change coincided with the SEC’s approval of spot Bitcoin ETFs, a milestone for Bitcoin, while also increasing interest in the altcoin sector. As investors navigate this evolving environment, the performance of altcoins like Solana may present new opportunities for growth even as Bitcoin continues to consolidate and prepare for its next big move.
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