Bitcoin‘s price has turned short positions aiming for $12,000 into a black hole, continuing to rise. Many short position holders facing multiple losses still stubbornly wait for the big drop. Turning to today, as Bitcoin’s rise continues, altcoin investors are waiting excitedly.
Will Altcoins Climb?
Bitcoin’s market dominance (BTCD) is nearing 54%. Since the crypto low in December, BTCD has been climbing steadily. Altcoins have not recovered as expected and most are trading at 80% below their peaks, with Ethereum nearly 50% below its peak.
So what’s next? An analyst known as IncomeSharks reminded us that in previous cycles, altcoins outperformed BTC in terms of gains, stating:
“Missing a 9% move in Bitcoin might be upsetting, but it’s really going to hurt when you miss out on over 900% gains in some altcoins. We are one step ahead in the flow of money.”
An analyst known by the pseudonym Moustache shared a similar chart and said, “We are still at a very early stage.”
Crypto YouTuber Lark Davis asked his followers whether the altcoin bull season has arrived, and only half think it has started.
Current State of Altcoins
Altcoins like ADA, DOGE, SOL, XRP are still about 81% below their peaks. This shows that in every bull season, a significant portion of altcoins remain at very attractive entry points while aiming for new peaks. However, the unpredictability of the crypto markets should not be forgotten.
Bitcoin could experience a significant intermediate peak before its ATH and then see the real bottom. Of course, predicting the future is impossible, and investors can only blame themselves for their losses, so they must make their own decisions.
Shiba Inu (SHIB) gained just over 8% during the day, and BCH rose 9% to approach the $250 mark. However, these are also about 90% below their peaks. On the other hand, understanding the stories of altcoins is crucial.
For example, ICP Coin rose 9% but is still 99% below its peak. Does this mean it will offer a massive gain opportunity when it returns to its former ATH level? Certainly not, because the market is vastly different from the day it soared, and most investors have since fled from it, never to return.
