Is the Altcoin Market Rally Sustainable?
The altcoin market has experienced a surge in the past three weeks, but the question remains: will this rally continue or is it just a short-term trend? While Bitcoin has been the primary driver of the crypto bull market this year, some altcoins like Solana, Injective, and Render have started to make significant moves.
Altcoins Market Cap
The Total3 crypto market cap, which includes all altcoins except BTC and ETH, has seen an influx of around $73 billion in the past three weeks. This has led to a rally towards the resistance level at $407 billion.
Source: Trading View
Bitcoin Dominance
The dominance of Bitcoin in the market has slightly decreased from 54% to 52% in recent weeks. While this may not be significant, there is a strong trend line that has been respected since late November 2022. Additionally, there is a strong support level at 49%.
Source: Trading View
Altcoins Following Bitcoin
Although Bitcoin may still have room for upward movement, with a potential breakthrough of $36,000 leading to $48,000, altcoins are likely to follow its lead. When Bitcoin loses momentum, value could flow out of it and into altcoins. Therefore, investing in promising altcoins now could be a wise long-term strategy.
Hot Take: Altcoin Rally Gains Momentum
The altcoin market has seen a surge in the past three weeks, with billions of dollars flowing into the space. While Bitcoin remains a dominant force, some altcoins have started to make significant moves. This trend is reflected in the increasing altcoin market cap and the slight decrease in Bitcoin dominance. As Bitcoin continues its upward momentum, altcoins are likely to follow suit. Investors should consider positioning themselves in promising altcoins for potential long-term gains. The altcoin rally shows promise and could be a sustainable trend in the crypto market.
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