Altcoins bled out against Bitcoin overnight as the selling pressure surged while bitcoin was reaching new all-time highs so let’s take a closer look at the price analysis in our altcoin news today.
BTC started a wild ride over the past few weeks and its parabolic growth trend showed no signs of coming to an end. Where will the market trend in the mid-term largely depend on BTC and whether it can sustain the upwards trajectory. So far, altcoins have not been able to match or surpass the growth seen by BTC while Ethereum’ severe underperformance was one of the leading causes behind this. One trader noted that it is quite dangerous to be exposed to altcoins while BTC is “trailblazing” and that it could be a better option to sit back and to wait before announcing a new altcoin season.
Bitcoin was rallying almost alone which causes major altcoins like Ethereum to post massive losses against its BTC trading pairs. This trend was ongoing for a month now with Bitcoin’s uptrend happening in isolation of the ones seen by other and smaller altcoins. One trader also noted that this trend could persist in the near-term while BTC’s price continues surging. He concluded that it is best to wait and see if BTC stabilizes before jumping into altcoins.
At the time of writing, BTC is trading up nearly 7% with a current price of $27,552 which is why other altcoins bled out against it. this marked a huge rise from the daily lows of $24,000 that was set yesterday morning and shows that BTC is in firm price discovery mode. However, its recent strength was not enough to cause tailwinds for other altcoins and most are still trading down a lot against their BTC pairs.
One trader explained in a post that investors are taking on major risks by jumping into the altcoins right now. He noted that the altcoins cannot gain momentum until BTC cools off:
“Hope you all had a good Christmas. As expected, altcoins went through some wild chop following those wicks cutting up traders left and right. If there is one thing I’ve learned over the years is that you don’t want to be too aggressive on alts when BTC is trailblazing.”
It’s not clear now how far BTC will rally before seeing more sideways trading and allow other coins to move higher but for some time being, the price action is making altcoins enter in precarious positions.
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