Most eyes are on bitcoin as it finally reaches that magic number of $50,000. However, cryptocurrency isn’t just about bitcoin. Some of the altcoins are starting to look as though they may dominate the next stage of this crypto bull market.
It could be argued that bitcoin is by far the most important cryptocurrency in this sector. It is a store of value, and it is freedom to transact with whoever you want, without big government and banks having the final say on it.
Altcoins risky but can still be bought
That said, there is a thriving world of cryptocurrencies out there. Admittedly, the vast majority of them will be going to zero, just like the fiat currencies that are currently the means of exchange in our traditional monetary system.
However, in the world of crypto, the free market is still relatively free, and people are still able to buy cryptocurrencies and back the innovation behind them.
Altcoin charts are looking good
Source: Coingecko/Trading View
The charts are now starting to look pretty good for a lot of the altcoins. Against the US dollar, the entire altcoin market is in a promising position. The Total 3 chart (all altcoins excluding $BTC and $ETH) shows that the altcoin market cap is currently breaking resistance, as well as the downward trend line. Fibonacci levels suggest that the next target could be $610 billion (0.382) and then $807 billion at the 0.618 fibonacci level.
Bitcoin dominance slowly decreasing
Source: Coingecko/Trading View
That said, altcoins don’t have to just contend with the US dollar, they also need to wrest some of the dominance away from $BTC. The Bitcoin dominance chart above shows that dominance rose to over 55% in early December of 2023. Since then, there have been a series of lower highs and lower lows, pointing to a gradual lessening of bitcoin’s dominance over the altcoins.
Some altcoins have already outperformed $BTC by quite some margin and look as though they will continue this trend. However, for traders new to the cryptocurrency space, be very wary. Altcoins can go up a lot, but they can also go down even faster. Educate yourself on the intricacies of trading, and more importantly, use proper risk management. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/02/is-the-altcoin-storm-about-to-break