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Altcoins Rally Through BTC Dip as Analysts Eye Bull Market

Altcoins Rally Through BTC Dip as Analysts Eye Bull Market

CryptotaleCryptotale2024/12/24 04:19
By:Cryptotale Author
  • Altcoins show strength as Bitcoin dipped to $92,400; market sees cycle extension.
  • Analyst predicts altcoin rally through Q1 2025, with key gains in January-March.
  • Bitcoin may lead again in mid-2025, but altcoins could dominate Q3-Q4.

The crypto market shows a clear shift as altcoins bounce back while Bitcoin pulls back to $92,400. Data from Santiment reveals strong altcoin performance, even as Bitcoin, the usual market leader during this bull run, faces selling pressure. Market analyst Miles Deutscher breaks down the current altcoin market, noting key losses across major tokens over the past week.

Altcoins Rally Through BTC Dip as Analysts Eye Bull Market image 0 Altcoins have seen a huge breakout Tuesday, even with Bitcoin dropping as low as $92.4K before a mild recovery. For those that scooped up speculative cryptocurrencies on the dip, things have worked out well. But note that BTC has mainly led the way throughout this bull cycle. pic.twitter.com/PVEEqHgtuV

— Santiment (@santimentfeed) December 23, 2024

Ethereum had dropped 17%, while Dogecoin and Chainlink had fallen about 22%. Smaller tokens showed deeper corrections between 20% and 35%. Yet Deutscher sees this pullback as a net positive for the market cycle. Looking at the monthly chart for Total 3 (total altcoin market cap minus Bitcoin), he describes recent price moves as a “trap candle” that caught both late buyers in the run-up and panic sellers in the drop. From a broader view, he sees this as normal market behavior, testing old resistance levels.

The analyst thinks the recent dip could stretch the bull run by one to two months. Instead of hurting the market, this extension might create more chances to profit throughout 2025 as different crypto sectors take turns leading the market. For the months ahead, Deutscher maps out a path where altcoins could outrun Bitcoin through January, hitting a local peak in Q1 2025.

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Miles stated that a big drop might follow, with Bitcoin taking the lead again before altcoins make an even stronger run in Q3-Q4 2025. This follows the 2021 trend, where Bitcoin peaked in May and November, with a big drop in between. A possible lower high in Bitcoin’s market share could open doors for altcoin gains, though it might cap Bitcoin’s own price potential this cycle.

For traders, this outlook means staying flexible with portfolio choices and taking profits when markets peak. The longer timeline could give multiple chances to buy into promising sectors, especially in areas like AI that might see several waves of growth. Deutscher says while short-term swings will continue, January through March 2025 could bring key opportunities for altcoins before another possible surge later in the year.

The post Altcoins Rally Through BTC Dip as Analysts Eye Bull Market appeared first on CryptoTale.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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