Bitcoin Creates Strong Tailwind as Traders Rotate Capital into Altcoins
- Bitcoin’s price has begun consolidating following its immense surge seen throughout the past 48 hours
- Yesterday afternoon, it rallied as high as $13,200 before it found any strong resistance that forced it lower
- Unlike the trend seen during fleeting upsurges, Bitcoin did not retrace that far into its recent rally following the rejection at these highs
- This indicates that bulls are in control of the asset at the moment and may indicate that further upside is imminent
- One analyst is noting that he is taking some steps to hedge his Bitcoin exposure. He said that he is now rotating into altcoins
Bitcoin and the entire crypto market have been caught in the throes of a firm uptrend. While, initially, BTC was the only asset to rally, altcoins are now catching up as they follow Ethereum higher.
This recent price action has been different than rallies seen in the past, as it is being driven by a combination of immense technical and fundamental health.
It is important to note that it has also allowed BTC to shatter its previously strong correlation to the stock market.
One analyst believes that altcoins may start outperforming Bitcoin in the near-term. He notes that they are starting to look increasingly “attractive” following their overnight surges.
Bitcoin Begins Consolidating as Altcoins Rally
Following Bitcoin’s slight rejection at $13,200, the altcoin market has posted a significant rally.
Much of this has come about due to Ethereum’s strong break above $400. This sent massive inflows of capital flowing into smaller coins and appears to be reigniting the “altseason” that was lost as a result of the recent multi-week selloff.
If Ethereum continues matching Bitcoin’s strength, it does seem as though altcoins could rally in tandem.
Analyst Claims Altcoins are Beginning to Look “Much More Attractive”
“I actually hedged my BTC longs at 12.9, believe it or not. I don’t know, feels like something is shifting. Altcoins are looking much more attractive now. Let’s see what happens, I’m going with the flow.”
If altcoins do begin exceeding Bitcoin’s moment, there’s a strong chance that those residing within the DeFi sector will see the largest gains, as they have been heavy sold over the past few weeks.
Featured image from Unsplash. Pricing data from TradingView.