The altcoins start to sell-off after BTC rejected near the $58K all-time high region as they are witnessing a bout of profit-taking so let’s read some more in our latest altcoin news today.
The optimism continues percolating in the crypto sector as the recent gains of BTC helped push the value above the South Korean won. The data from Tradingview shows that the price of BTC experienced a wave of selling in the early hours which pushed the price to a new low of $54,948 before the bulls were able to return the price and push it above $57,000. Regardless of the BTC price action, the institutional investors expressed their interest in BTC and Microstrategy even announced that it purchased another 262 BTC at an average price of $57,146 which is bringing the company’s total holdings to 91,326 BTC. The altcoins start to sell-off right as BTC dropped despite the investments made.
According to David Lifchitz who is the Chief Investment Officer at ExoAlpha, the price performance over the next few days will show if BTC is ready to hit new highs or if a pullback is on its way. He pointed out that the price of BTC got down a little on Friday after stalling a few basis points from the ATH due to profit-taking by the users that monetized the 10% from $45K to $57K. Bullish indicators for BTC that were identified by the analyst, include interest from institutional dip-buyers around the $45K level and the passed stimulus package from the US Government that will go right into crypto purchase according to him.
Lifchitz didn’t concede that despite the price being in an uptrend, there were some reasons for the bearish outlook for the short-term. A few factors to consider were the upcoming US tax session which will prompt some investors to sell their holdings and will raise cash to pay taxes on profits from 2020. Another bearish factor was the spillover effect that will result from the sale of traditional assets that are stretched and could see some profit-taking in the short-term:
“A sideways consolidation is likely here in the short term before a potential breakout to new ATH if the pullback holds ground as described above.”
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