A widely followed strategist and trader is issuing a warning on altcoins amid a crypto market rally led by Bitcoin (BTC).
Pseudonymous analyst Credible Crypto tells his 341,000 Twitter followers that while altcoins will go up over the short term, they are likely to massively underperform BTC once the flagship digital asset initiates an impulsive rally.
“I know it’s tempting to hop into altcoins right now thinking they will catch up to BTC. In the short term, they probably will see some nice bounces- but these should be short-term trades only in my opinion.
I’ve been in this space for nearly six years now and I’ve seen it time and time again. Every time BTC begins a true impulsive move, altcoin/BTC pairings bleed more than most can imagine.”
According to Credible Crypto, the underperformance of altcoins relative to Bitcoin typically ends when BTC reaches a new all-time high.
“Altcoins look good against US dollar, some look absolutely primed, but BTC still ends up outperforming most of them. This changes at some point. Usually close to (or soon after) all-time highs are broken as new money floods into the laggards.
Until then, the attention and liquidity will be concentrated on a rapidly appreciating Bitcoin, which is where your focus should lie (for now).”
On Bitcoin’s price action going forward, Credible Crypto says he is targeting BTC to rally above $32,000.
“Now that we have cleared the local supply zone [around $30,000] where I said we should be cautious, I’m once again bullish on low time frame as well.
If this is an impulsive move and the start of our accelerated move to new all-time highs, we should hold the GREEN zone (prior resistance) on any retests.
First target, $32,000+.”
Bitcoin is trading at $30,074 at time of writing.
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