Bitcoin

when

Altcoins will swing between big rallies and pullbacks until Bitcoin confirms a breakout past the $100,000 mark, according to a crypto analyst.
“We’re really waiting to see that exuberant move, and then we’ll look at that rotation of capital,” crypto exchange Swyftx lead analyst Pav Hundal told Cointelegraph at Aus Crypto Con 2024.
<h2 id="altcoins-will-remain-choppy">Altcoins will ‘remain choppy’</h2>
Hundal said there are “diamonds in the rough,” like several memecoins outperforming Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>), but altcoins will likely “remain choppy” until Bitcoin passes the six-figure price level. On Nov. 23, Bitcoin narrowly missed $100,000, reaching $99,605. At the time of publication, it was trading at $96,476.
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 <img alt="Cryptocurrencies, Markets" src="https://s3.cointelegraph.com/uploads/2024-11/019375f1-503f-7bb7-b019-56955e412b61" title="">
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 Bitcoin was trading at $96,476 at the time of publication. Source: TradingView
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“I mean, they might see a 20%, 30%, 40% gain, but then it’ll retrace most of that move the next day,” Hundal said.
On Nov. 21, Solana (<a data-ct-non-breakable="null" href="https://cointelegraph.com/solana-price-index" rel="" target="_self" text="null" title="https://cointelegraph.com/solana-price-index">SOL</a>) posted a 13% gain within 24 hours, only to give up nearly 13% over the next five days.
Even major memecoins by market cap have seen this pattern. On Nov. 15, Pepe (<a data-ct-non-breakable="null" href="https://cointelegraph.com/pepe-price-index" rel="null" target="null" text="null" title="null">PEPE</a>) surged about 93.2% in 24 hours following listing announcements by Coinbase and Robinhood, only to retrace almost 22% of those gains the next day, according to CoinMarketCap <a data-ct-non-breakable="null" href="https://coinmarketcap.com/currencies/pepe/" rel="null" target="null" text="null" title="null">data</a>.
Asked if PEPE has the potential to do “800% days,” as seen in the previous cycle with Doge (<a data-ct-non-breakable="null" href="https://cointelegraph.com/doge-price-index" rel="null" target="null" text="null" title="null">DOGE</a>), Hundal said he “wouldn’t discount that, but when you’re talking high market caps, you really need that capital flowing in.”
“These sorts of things become more possible when Bitcoin dominance is coming back to the downside.”
Bitcoin dominance measures Bitcoin’s market capitalization as a percentage of the total crypto market.
<h2 id="bitcoin-dominance-is-key">Bitcoin dominance is key</h2>
Hundal said that Bitcoin dominance might reach the 65% to 67% range, even “up to the 70%” range, before it starts to decline.
“For me, it’s not a case of trying to pick the PICO top of Bitcoin dominance as to when the altcoin market is going to start coming down,” Hundal said.
At the time of publication, Bitcoin dominance was 58.3%, according to TradingView <a data-ct-non-breakable="null" href="https://www.tradingview.com/symbols/BTC.D/" rel="null" target="null" text="null" title="null">data</a>.
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 <img alt="Cryptocurrencies, Markets" src="https://s3.cointelegraph.com/uploads/2024-11/019375f2-0f3f-74ae-b568-fd765a5cbeb9" title="">
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 Bitcoin dominance was 58.3% at the time of publication. Source: TradingView
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Pseudonymous crypto trader Mikybull Crypto said in a Nov. 28 X <a data-ct-non-breakable="null" href="https://x.com/MikybullCrypto/status/1862142866039980224" rel="null" target="null" text="null" title="null">post</a> that “violent declines in Bitcoin dominance will begin next month.”
Still, CryptoQuant CEO Ki Young Ju recently <a data-ct-non-breakable="null" href="https://x.com/ki_young_ju/status/1861693773086081273" rel="null" target="null" text="null" title="null">told</a> his 374,200 X followers not to expect the altcoin season to be the same as in previous cycles.
Ju said this is due to institutional investors with little interest in speculative tokens driving the current Bitcoin rally.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/traders-still-riding-on-hot-altcoins-despite-bitcoin-93k-pullback-santiment" rel="null" target="null" text="null" title="null">Traders still riding on ‘hot altcoins’ despite Bitcoin pullback: Santiment</a>
“Unlike crypto exchange users, institutional investors and ETF buyers have no intention of rotating their assets from Bitcoin to altcoins,” Ju said.
“For altcoins to reach a new all-time high market capitalization, they will require a significant influx of fresh capital to crypto exchanges. The altcoin market cap below its previous ATH indicates reduced fresh liquidity from new exchange users,” he said.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/5-incredible-uses-for-based-agents-and-nears-ai-assistant/" rel="null" target="null" text="null" title="null">5 incredible use cases for Based Agents and Near’s AI Assistant</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Altcoins to stay choppy until Bitcoin hits ‘exuberant move’ — Analyst

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