The post Is Altcoins Bloodbath Coming? Here’s What Traders Can Expect appeared first on Coinpedia Fintech News
The crypto market is a complex and interconnected ecosystem, where cash flow occurs between Bitcoin and the altcoin market, particularly when new investments are minimal. As the oldest digital asset, Bitcoin has long dominated the entire crypto market. However, with the emergence of faster, cheaper, and more efficient blockchains, Bitcoin’s dominance has shrunk over the years.
Can Altcoins Yield Better Returns?
As a result, crypto traders have shifted their focus to altcoins, searching for higher returns amid Bitcoin’s diminishing returns due to its high market cap. Among these altcoins, the meme coin industry has gained significant attention from global crypto traders. This industry is characterized by high volatility fueled by speculation, and its popularity has grown rapidly.
Also Read: Crypto Whales Make Millions Profit Through These New Meme Coins: $PEPE, $WOJAK, $AIDOGE – Coinpedia Fintech News
Key Levels to Watch: A Technical Analysis
According to CryptoPatel, a pseudonymous crypto analyst on TradingView, Bitcoin Dominance has key levels to watch. These include a support level of 45%, as well as resistance levels of 48% and 62%. If Bitcoin’s market dominance drops to 45%, the analyst believes that the altcoin season could further materialize. However, a failed breakout on Bitcoin Dominance could lead to a retest to the support level of around 45% before pumping.
Related: This Altcoin Could Soon Outperform The Other Memecoins By 50% Very Soon
A Bloodbath or a Strong Support Level?
CryptoPatel also notes that if Bitcoin Dominance breaks out of the 48% resistance level, it could lead to a bloodbath in altcoins trading in BTC pairs. Additionally, it may also affect altcoins trading in USD pairs if Bitcoin remains stable or dumps. However, if the breakout occurs, the 48% resistance level will convert into a strong support level.
“If Bitcoin Dominance breaks out of the 48% resistance level, it could lead to a bloodbath in altcoins trading in BTC pairs. It may also affect the altcoins trading in USD pairs if Bitcoin remains stable or dumps. However, if the breakout occurs, the 48% resistance level will convert into a strong support level.”