Analyst Suggests Altcoin Recovery May Follow Bitcoin’s Final Cycle Stage—Here’s Why

NewsBTC
Updated
Mitrade
coverImg
Source: DepositPhotos

Bitcoin continues to showcase resilience in the current cryptocurrency market cycle, consistently setting new records while many altcoins remain below their previous peaks.

Currently trading just above $104,000, Bitcoin has recently retraced from its all-time high above $111,000, set last month. Contrasting Bitcoin’s consistent growth, Ethereum and other prominent altcoins have yet to surpass historical highs that they reached several years ago, highlighting a notable divergence in market performance.

This divergence has been a focal point among analysts, prompting a deeper examination of investor behavior and capital flows between Bitcoin and altcoins. Recent insights from CryptoQuant analyst Dan suggest that while Bitcoin remains dominant, the situation for altcoins might shift in the upcoming phase of the crypto market cycle.

Bitcoin Investor Behavior Suggests Potential Shift Ahead

CryptoQuant analyst Crypto Dan recently explored the broader implications of this Bitcoin-dominated cycle in his market commentary. According to Dan’s analysis, previous market cycles typically saw a gradual reduction in mid-to-long-term Bitcoin holdings as investor capital redistributed into altcoins.

Bitcoin realized caps.

This shift traditionally drove altcoins significantly higher, usually marking the late stages of a bullish cycle. However, this cycle exhibits a different pattern.

Frequent minor corrections in Bitcoin’s price are followed by more significant and sharp downturns for altcoins, demonstrating persistent weakness. Crypto Dan notes that currently, very few altcoin investors have realized meaningful profits, an unusual circumstance compared to prior cycles.

Despite this ongoing difficulty for altcoin holders, the analyst maintains optimism, emphasizing that historical patterns suggest Bitcoin’s dominance typically declines towards the end of each cycle.

If history repeats, altcoins might experience substantial upward movements as the cycle approaches its maturity. Thus, while altcoins currently underperform, investors are advised to maintain patience until Bitcoin’s momentum reaches its final bullish push, potentially signaling a turning point.

Bitcoin (BTC) price chart on TradingView

Whale Activities Hint at Upcoming Altcoin Attention

Complementing this perspective, another analyst from CryptoQuant, Maartunn, provided insights into stablecoin inflows to major exchanges.

Specifically, Maartunn highlighted that over 75% of Tether (USDT) deposits to Binance, tracked via the TRC-20 network, originated from large wallets, commonly known as whales, since November 2023.

This substantial concentration of whale activity suggests that major market participants prefer Binance for significant capital movements involving stablecoins.

The notable whale-driven inflows to Binance could indicate preparation for substantial market activity, including potential purchasing of Bitcoin or an eventual shift towards altcoins.

Historically, stablecoin deposits from large holders precede increased volatility and trading activity, as whales position themselves strategically in anticipation of market shifts.

Featured image created with DALL-E, Chart from TradingView

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Bitcoin’s Drop Below $100k Sparks Bearish Chatter, But Data Says Something ElseBitcoin has rebounded slightly after dropping below the $100,000 mark, a decline attributed to escalating geopolitical tensions. The digital asset reached lows of approximately $98,974 following
Author  NewsBTC
Yesterday 06: 10
Bitcoin has rebounded slightly after dropping below the $100,000 mark, a decline attributed to escalating geopolitical tensions. The digital asset reached lows of approximately $98,974 following
placeholder
Bitcoin Crashed Below $100,000 Amid US Airstrikes On Iran And Market Sell-OffThe market’s leading crypto, Bitcoin (BTC), dipped below the $100,000 mark for the first time in over a month on Sunday, following US airstrikes on Iran as conflicts in the middle east continue to
Author  NewsBTC
6 Month 23 Day Mon
The market’s leading crypto, Bitcoin (BTC), dipped below the $100,000 mark for the first time in over a month on Sunday, following US airstrikes on Iran as conflicts in the middle east continue to
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – Bears set sight on $98K BTC, $2K ETH and $1.77 XRPBitcoin (BTC), Ethereum (ETH), and Ripple (XRP) declined by nearly 5%, 13%, and 7%, respectively, last week as tensions in the Middle East escalated. BTC is nearly at its key support level of around $100,000; a close below this level would trigger further correction.
Author  FXStreet
6 Month 23 Day Mon
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) declined by nearly 5%, 13%, and 7%, respectively, last week as tensions in the Middle East escalated. BTC is nearly at its key support level of around $100,000; a close below this level would trigger further correction.
placeholder
Bitcoin Price Forecast: BTC on the verge of a breakdown amid possible US strike on IranBitcoin (BTC) price edges slightly higher, trading near $104,700 at the time of writing on Thursday, after stabilizing above a key level, the 50-day Exponential Moving Average (EMA) at $103,100. A breach below this level could trigger a sharp fall in BTC.
Author  FXStreet
6 Month 19 Day Thu
Bitcoin (BTC) price edges slightly higher, trading near $104,700 at the time of writing on Thursday, after stabilizing above a key level, the 50-day Exponential Moving Average (EMA) at $103,100. A breach below this level could trigger a sharp fall in BTC.
placeholder
$150,000 Bitcoin Is In Play—Unless This One Macro Metric SnapsBitcoin may be gearing up for a renewed surge, but according to trader Josh Olszewicz, the bullish setup is walking a macroeconomic tightrope—and one wrong move could send everything tumbling. In
Author  NewsBTC
6 Month 18 Day Wed
Bitcoin may be gearing up for a renewed surge, but according to trader Josh Olszewicz, the bullish setup is walking a macroeconomic tightrope—and one wrong move could send everything tumbling. In
Real-time Quote