Altcoins in the red – should you sell?

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As a seasoned crypto investor with battle scars from the 2017 bull run and the subsequent bear market, I must admit that the current state of the market has me feeling both excited and cautious. Bitcoin’s consolidation just below $90,000 and the rising Bitcoin Dominance have me revisiting my portfolio strategy.

Is it a good moment to cash out your altcoins and hop aboard the Bitcoin trend as Bitcoin hovers slightly under $90,000, and its dominance in the market continues to grow?

Will your altcoins outperform Bitcoin?

When you own any altcoin for more than a brief span, it’s crucial to continually ponder: “Will my altcoin surpass Bitcoin in performance?” If the answer is “no,” and it often is for most altcoins, then the decision to either sell or hold becomes significant.

Absolutely, seasoned traders often engage in buying and selling various alternative cryptocurrencies, be it day-trading, swing trading, or quick scalping strategies. However, the central point of discussion is whether one should cash out their recently purchased altcoins at this moment to prevent potential losses if Bitcoin were to reverse its trend and plunge downwards.

Is this bull market different?

Some people believe that this current crypto market rally differs from past ones. Traditionally, it’s been thought that in a bull run, Bitcoin would lead the charge first, followed by investors moving their funds into Ethereum once Bitcoin cooled down. Then, the investment would move up to large caps, then medium caps, and finally small caps before returning to Bitcoin. This pattern is often referred to as a “rotation.” However, this time around, some think that the cycle might not follow this pattern as closely as it has in the past.

During this prolonged bull market, Bitcoin has made significant gains while most alternative coins (altcoins) have struggled and lost ground compared to Bitcoin, the leading cryptocurrency. Only a select few altcoins have managed to make some progress against Bitcoin’s dominance.

Bitcoin Dominance continues to rise

Regarding Bitcoin Dominance, it has surged once more, potentially leading to the 60% barrier being transformed from resistance into support. Currently hovering around 61%, one may ponder what circumstances could cause this persistent growth to slow down and eventually reverse.

As Bitcoin appears poised to reach $100,000 soon, it seems many alternative cryptocurrencies might struggle to match its pace. The horizon for Bitcoin’s dominance in the market stretches significantly further to approximately 71%.

Total3 forms bull flag

Conversely, examining the chart for the overall market capitalization of all cryptocurrencies except for Bitcoin and Ethereum reveals a similar pattern: the price appears to be shaping like a flag below a significant resistance level, much like Bitcoin.

Total3 setup similar to that of Bitcoin

On a daily scale for Total3, the outlook turns increasingly optimistic. The structure closely resembles that of Bitcoin, with the price breaking through the upper boundary of a large bullish pennant, experiencing resistance after a significant price increase, and currently forming a smaller pennant, potentially fueling further advancement.

Given this optimistic forecast, it’s likely that leading altcoins might surpass other investments during the final phase of the bull market. Investors should ensure that their portfolio includes only those altcoins that are part of this elite group.

Conversely, when uncertain, Bitcoin tends to offer comparable or even greater returns compared to most alternative coins. Moreover, significant price drops in the future are likely to be more manageable for Bitcoin investors compared to those of many other altcoins. Make a wise decision.

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2024-11-13 17:05