The recent “<span class="wpg-tooltip-term-title">Altcoin</span></h3><div class="wpg-tooltip-content">Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/altcoin/">» Read more</a><p></div>”>altcoin season” playing out over the last several days while Bitcoin downtrends, has traders “cautious” about what could be next. As for what could possibly lie ahead that has crypto traders so fearful, is an <span class="wpg-tooltip-term-title">Altcoin</span></h3><div class="wpg-tooltip-content">Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/altcoin/">» Read more</a><p></div>”>altcoin-led blow-off top that sends crypto back into the troughs of a short-term <span class="wpg-tooltip-term-title">Bear</span></h3><div class="wpg-tooltip-content">Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/bear/">» Read more</a><p></div>”>bear phase.
Here are the unique market factors at hand that could give the crypto market reason to proceed with caution.
Cautious Crypto Trader: Beware Of Possible Blow-Off Top In Alts
Bitcoin is now trading at $35,000 after making another attempt to push above $40,000 yesterday. $5,000 per day candles in either direction are now the norm in crypto trading, but that’s not what has some top analysts and traders spooked about the recent price action.
Related Reading | The Striking Similarities Between The 2017 Bitcoin Peak And Now
Ever since the peak of the 2017 bull market, have crypto investors been awaiting an <span class="wpg-tooltip-term-title">Altcoin</span></h3><div class="wpg-tooltip-content">Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/altcoin/">» Read more</a><p></div>”>altcoin season to bring enormous gains in a matter of days once again. Life-changing wealth was generated, then lost as quickly as it arrived.
The spark to kick this off was supposed to be Bitcoin passing $20,000 but that feat came and went, and only now are altcoins popping off while Bitcoin has begun to downtrend. It has a top crypto trader “cautious” about a potential “blow-off top” in altcoins. And here’s why.
Chainlink and Polkadot are beginning to eclipse Bitcoin | Source: BTCUSD on TradingView.com
<span class="wpg-tooltip-term-title">Altcoin</span></h3><div class="wpg-tooltip-content">Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/altcoin/">» Read more</a><p></div>”>Altcoin Season While BTC Drops Has Marked Past Crypto Market Tops
Crypto trader Johnny Moe is approaching the current price action across crypto, and for good reason. Bitcoin is downtrending, all while altcoins are soaring. Polkadot gained 75% in two days, and Chainlink just set a new all-time high.
Bitcoin and altcoins tend to uptrend together, the handful of times when the two asset types diverged, it has signaled a top was in. Altcoins were recently surging alongside Bitcoin as it pushed above $40,000 and setting new all-time highs, but the latest rally in altcoins is taking place while the leading cryptocurrency by market cap is turning down.
Bitcoin’s rejection at $40,000 recently is the first higher low on daily timeframes in months, and if a lower low is put in, the cryptocurrency will have by definition fallen into a downtrend. <span class="wpg-tooltip-term-title">Altcoin</span></h3><div class="wpg-tooltip-content">Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/altcoin/">» Read more</a><p></div>”>Altcoin price action continuing to fly while Bitcoin dives, could be a repeat of the conditions that caused the 2017 peak.
Related Reading | Capital Manager: Ethereum Will Double In Two Weeks Once ATH Is Broken
If this is indeed the top, it might be bad for Bitcoin, but altcoins could have another two more weeks left of momentum and gains before the blow-off top is complete and the rest of the crypto market turns around.
Is this trader right to be cautious? Or is <span class="wpg-tooltip-term-title">Bear</span></h3><div class="wpg-tooltip-content">Bear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.<p class="wpg-read-more"><a href="https://www.newsbtc.com/dictionary/bear/">» Read more</a><p></div>”>bear market PTSD getting the best of them, and this latest “downtrend” is just another opportunity to buy the dip?
Featured image from Pixabay, Charts from TradingView.com