Over the last few weeks, the broader cryptocurrency market has experienced a selling pressure with Bitcoin and some top altcoins heading lower. There is a great deal of uncertainty regarding macro developments and ongoing US debt ceiling negotiations, leading to a waning enthusiasm for buying the dips. Traders are currently more inclined to buy short-term, small dips instead of the bigger ones.
According to on-chain data provider Santiment, this kind of hesitation and fear has historically been opportune for capitalizing on the market. Interestingly, Bitcoin miners have continued to add throughout May despite this turbulence, with Glassnode data revealing a balance sheet expansion of 8,200 Bitcoins for miners and total holdings now nearing 80k BTC.
While Bitcoin’s price remains under selling pressure, attention has shifted to altcoins, with several underbought signals across the sector. This could present an attractive opportunity to accumulate altcoins, especially given that we are now one year away from the next halving event. This time frame has previously proven to be an ideal moment to accumulate positions in digital assets.
Prominent traders like Michael Van De Poppe, founder of Eight Global, echo the sentiment that now is the time to buy altcoins. A weekly bullish divergence on others dominance chart (excluding Bitcoin and Ethereum) supports this claim, indicating that altcoins may soon bottom out, presenting a potential profit-making possibility.
One such altcoin displaying strength is Litecoin (LTC), which surged above $90 before the current retracement, driven by the upcoming halving event. However, it is crucial to understand that the presented content may be subject to market conditions and the personal opinion of the author. Investors should conduct thorough market research before investing in any cryptocurrencies, keeping in mind that neither the author nor the publication holds responsibility for any personal financial loss.
In conclusion, the cryptocurrency market is currently facing uncertainty and selling pressure, particularly for Bitcoin and top altcoins. However, this situation might present a golden opportunity to invest in altcoins, as they flash underbought signals. As always, potential investors should conduct their research and be prepared for market volatility.
Source: Coingape
