- Bitcoin has been on a wild ride for the past few weeks and its parabolic growth trend shows no signs of an end anytime soon
- Where market trends should largely depend on Bitcoin in the medium term and whether it can continue its upward trend
- So far, altcoins have not been able to match or surpass the growth of BTC, with Ethereum’s sharp underperformance possibly being one of the main drivers
- One trader notes that while bitcoin is “groundbreaking,” it is dangerous to be heavily exposed to altcoins and that it might be better to sit back and wait before opening new altcoin positions
Bitcoin rebounded independently of the rest of the crypto market, which resulted in large altcoins like Ethereum posting massive losses against their Bitcoin trading pairs.
This trend has been going on for over a month, and BTC’s uptrend is in isolation from that of other smaller altcoins.
A trader now notes that this trend could continue for the short term as Bitcoin’s price continues to skyrocket. He claims it’s best to wait for BTC to stabilize before jumping into altcoins.
Bitcoin rises to $ 26,000 as Altcoins stall
At the time of writing, Bitcoin is trading nearly 5% from its current price of $ 25,860. This is roughly the price it has been trading at all morning.
This is a massive increase from the daily lows of $ 24,000 set yesterday morning and shows that BTC is still in a phase of fixed pricing.
However, recent strength has not been enough to generate tailwind for altcoins as most are still clearly trading against their BTC pairs.
Analyst warns knives catch falling altcoins
A trader recently stated in a post that investors are taking big risks by jumping into altcoins right now.
He notes that altcoins can usually only really gain momentum once bitcoin cools down and enters a period of consolidation.
“I hope you all had a good Christmas. As expected, altcoins have suffered a wild blow after those wicks that traders cut left and right. If there’s one thing I’ve learned over the years is that when BTC is leading the way, you don’t want to be too aggressive with alts. “
Image courtesy DonAlt. TradingView charts.
It is unclear how far Bitcoin will rebound before trading sideways and altcoins can move higher, but for now, its price movement puts altcoins in a precarious position.
Featured image from Unsplash. TradingView charts.