Analyst: Altcoin Downside Extremely Limited as Bitcoin Remains Stable

Analyst: Altcoin Downside Extremely Limited as Bitcoin Remains Stable

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  • Bitcoin has been stable in the time following its $13,800 rejection, with bulls gaining some momentum as the cryptocurrency flashes continued signs of strength
  • Although it is not showing any overt signs of weakness at the moment, altcoins have been capitulating throughout the past few days and weeks, with many posting immense losses
  • Analysts are now noting that altcoins may be in the process of forming mid-term bottoms
  • One trader is noting that downside on smaller tokens is “extremely limited” at the moment
  • This means that today’s intense altcoin sell-off may have led many of them into oversold territory, meaning that a strong relief rally is imminent

This has come about largely at the expense of altcoins, which have been caught within unrelenting downtrends that have led investors to see intense losses.
Image Courtesy of The Crypto Dog. Source: TradingView

This strength has been brutal for altcoins, especially newer ones that gained attention as a result of the DeFi bull run.
Bulls have been slowly pushing it higher ever since this rejection took place.

Bitcoin Struggles to Gain Momentum, But Altcoins Continue Selloff 

The past few weeks have been brutal for altcoins, many of which have declined by 50% or more as the focus shifts to Bitcoin.
Bitcoin has been garnering significant amounts of investor attention and funding as of late due to its overt strength.
One investor doesn’t expect this trend to persist for too much longer. He is now noting that altcoin downside is extremely limited.
“I could definitely be wrong but I think downside on altcoins is actually limited from here. I still think this breaks to the upside. While the lion’s share of my exposure recently has been BTC, I’m still holding a handful of alts near and dear to me and optimistic on altcoins.”

Analyst: Altcoin Downside Now Limited Following Brutal Selloff 

Bitcoin has been caught within a firm consolidation phase throughout the past few days, trading within the lower-,0000 region following the rejection at ,800.
It is now trading up marginally at its current price of ,330 while the rest of the market drifts lower.

Featured image from Unsplash.
Charts from TradingView.

He notes that altcoin downside is now limited, adding that he expects most to see upward breakouts in the near-term.
There’s a possibility that further downside could be around the corner if BTC continues gaining dominance over the market, but one analyst isn’t too concerned with this possibility.

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