- Bitcoin has been on a wild ride in recent weeks and the parabolic growth trend is showing no signs of an end anytime soon.
- Where medium-term market trends should largely depend on Bitcoin and whether it can sustain its upward trajectory
- So far, altcoins have failed to match or exceed BTC’s growth, with Ethereum’s severe underperformance possibly being one of the main drivers behind this.
- A trader notes that it is dangerous to be heavily exposed to altcoins while Bitcoin is “groundbreaking” and that it may be better to sit back and wait before installing a new altcoin positions
Bitcoin is independent from the rest of the crypto market, causing major altcoins like Ethereum to take huge losses against their Bitcoin trading pairs.
This trend has been going on for over a month now, with BTC’s uptrend taking place in isolation from that of other smaller altcoins.
A trader now notes that this trend could continue in the short term while the price of Bitcoin continues to rise. He claims it’s best to wait for BTC to stabilize before jumping into altcoins.
Bitcoin is accumulating towards $ 26,000 as Altcoins Stall
At the time of writing, Bitcoin is trading up nearly 5% at the current price of $ 25,860. This is around the price it has been trading at all morning.
This marks a massive rise from the daily lows of $ 24,000 set yesterday morning and shows that BTC is still in a solid price discovery phase.
However, the recent force was not enough to create tailwind altcoinsas most are still declining in value significantly against their BTC pairs.
Analyst warns against knife that catches falling altcoins
A trader explained in a recent message that investors are taking big risks by jumping into altcoins now.
He notes that altcoins typically cannot gain serious momentum until Bitcoin has cooled and enters a consolidation phase.
‘I hope you all had a good Christmas. As expected, altcoins went through a wild hack behind those fuses slicing traders left and right. If there’s one thing I’ve learned over the years is that you don’t want to be too aggressive with alts when BTC is groundbreaking. “
Image Courtesy of DonAlt. Charts from TradingView.
It is unclear how far Bitcoin will rise before it sees any sideways trading and makes altcoins move higher, but for now the price action puts altcoins in a precarious position.
Featured image from Unsplash. Charts from TradingView.