Altcoins
Bitcoin rises, altcoins fall: analyst explains
The price of Bitcoin (BTC) has surged over the past day, increasing its price by almost 10% to over $19,500. Meanwhile, most major altcoins like Ethereum (ETH) continued their downward trajectory.
According to crypto analyst Jason Pizzino, this divergence between Bitcoin and altcoins is expected in the current market cycle. In his latest YouTube video, Pizzino explains why the increase in the price of Bitcoin does not yet necessarily signal a broad recovery in the crypto market.
The analyst notes that although Bitcoin successfully tested a key resistance level around $19,400, it needs to consolidate above this level before confirming an uptrend. When it comes to altcoins, Pizzino points out that most major cryptocurrencies are hitting new lows against Bitcoin.
Ethereum, in particular, has fallen below key long-term support levels on its Bitcoin pair, indicating weakness. Pizzino believes that the ETH and BTC pair could bottom between 4-5% in early 2024, consistent with historical market cycles.
Other major altcoins like XRP, Solana (SOL), Polygon (MATIC), and Chainlink (LINK) also crashed from local highs, underperforming Bitcoin. According to Pizzino, this weakness in altcoins means that only the strongest will significantly participate in the next bull market. Investors should be selective and wait for clear technical signals before buying altcoin dips.
Pizzino also considered broader macroeconomic factors such as the S&P 500, US Dollar Index and volatility indexes. He noted that despite fears of recession, these market indicators have stabilized and started to consolidate within a certain range. This supports the case for a gradual recovery of risk assets like crypto, but probably only in 2024-2025.