Did you buy the dip? If so, whose dip?
Altcoins have rebounded strongly since last week’s lows, with Bitcoin looking much weaker and uncertain about which direction to take. That is consistent with the thesis presented in our recent post. We outlined how Bitcoin could trade sideways for a while, giving the market another opportunity for another mini-Altseason.
The chart compares Bitcoin’s price (above) in parallel with the total market capitalization of cryptocurrencies (excluding Bitcoin ) divided by BTC’s market cap
This indicates quite clearly under and overperformances of the market versus Bitcoin .
Looking at the chart, Altcoins seem to have held quite firmly considering the Bitcoin’s plunge, ending up capitulating only when the market hit extreme levels. After the (local) bottom was in place, traders and investors rushed into buying back the coins that they were forced to fire-sell just a few days earlier. Experienced market participants have been able to buy back at a lower price, others, unfortunately at higher.
This is the typical wealth redistribution in these cases, from those that panic-sell to those who patiently wait to buy dips. Hate it, or love it, that’s the market.
What’s next? Despite the sharp rebound, Altcoins didn’t manage to regain the steep uptrend. They have been trading in for weeks. If this doesn’t happen soon, their momentum could deteriorate. In that case, that could be an opportunity to rotate back into Bitcoin , providing the right amount of fuel to break once and for all the $60,000 resistance.