In recent market analysis, the dominance of Bitcoin over other altcoins has touched a three-month high. Given the pressure of sell-offs, the plight of altcoins seems uncertain which can lead to prospective short opportunities for traders. However, it’s not all shades of grey, as market stability has begun to return outmatching the initial dips at the onset of the week.
Experts like Michaël van de Poppe, from MN Trading, keep an optimistic outlook on the future of BTC, arguing the potential climb towards $35,000-$40,000 if BTC manages to breach the $28,000 barrier. Van de Poppe’s previous stance signalled the possibility of a journey towards $30K, indicating particular resistance levels that need to be tackled.
On the other side of the picture, the scenario seems less favourable for altcoins. Data points encircle Bitcoin’s command over the overall crypto market cap, hitting 51.35% on Oct. 9, the highest since mid-July. Digging deeper, some altcoins seem to be on the brink of crumbling key support zones, which brings delightful short entries for traders. In the crypto sphere, however, stability is a relative term. Even for Bitcoin, dipping below the level of $27,200 creates an air of uncertainty and invites possibilities of going short BTC.
The market conditions have swayed towards ‘de-risking’, which is a noteworthy element pertaining to the crypto sphere. The events follow the dips in Bitcoin and altcoin prices but the market panorama isn’t just about numbers. The confidence instilled in traders and the conviction with which they place their assets might be the real game-changer here.
Altcoins cannot be viewed as unworthy just because they’re faced with significant pressure from sell-offs. The survival lies in how they manage to recover and capitalize on the situation. Depending on the volatility of the market, today’s risk could turn into tomorrow’s investment opportunity.
It’s essential to acknowledge that market scenarios are never devoid of uncertainty and suspicions. Every investment carries a degree of risk and potential investors and traders are advised to perform their independent research before jumping to decisions. It’s never just about hitting bull’s eye. It’s more about learning how to dodge the arrows coming your way. Blockchain technology and cryptocurrencies are a path-breaker, and just as they introduce us to uncharted territories, they can surprise us with confusing intersections.
Source: Cointelegraph
