A popular crypto market analyst thinks an upcoming Bitcoin move could leave altcoin traders underexposed to the top crypto asset.
The pseudonymous trader known as Altcoin Sherpa tells his 133,300 Twitter followers that the Bitcoin dominance chart over the crypto market looks bullish, which typically corresponds with a bleed out from altcoins against their BTC valuation.
“We’re all about to be very underexposed to Bitcoin with what happens next. This is the dominance chart
when [BTC dominance] goes up, alt/btc [goes] down. [Because] everyone has 100% altcoins, you’re going to be crying when you see altcoins underperform.
BTC rips->alt usd consolidate -> alt/btc [down]”
The Bitcoin dominance chart tracks BTC’s market cap relative to the valuation of the rest of the crypto markets. A bullish BTC dominance chart indicates that Bitcoin is rising faster in value than other crypto assets.
Looking at Bitcoin, Sherpa says that Bitcoin’s market structure has turned bullish after reaching its first higher high in five months.
“Markets either range, uptrend, or downtrend. I believe we’re now in a bullish market structure at this point. Expecting all-time highs within the next few weeks.”
As for the second-largest cryptocurrency Ethereum (ETH), the trader expects ETH to inch its way toward a fresh all-time high.
“This is what I am expecting on the 1D for Ethereum. Grind up to 4k, consolidate, go to all-time highs.”
Currently, Ethereum is trading just over $3,500, but Sherpa is expecting the $4,300 level to be broken by November.
Finally, Sherpa is keeping his eye on the smart contract platform Harmony (ONE). He says that ONE looks ready to move higher against both the USD and BTC.
“This is one of the few altcoins I would consider longing right now. I think the BTC pair breaks [all-time high levels] due to how the USD pair looks. Strong for both pairs [to be honest.]”
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