Altcoins will continue witnessing massive rallies and corrections until Bitcoin breaks above $100,000, according to a lead analyst at Swyftc, Pav Hundal. He argues that the whales will likely start rotating their capital from Bitcoin to other cryptocurrencies when that tough resistance is broken.
On November 23rd, Bitcoin’s price came close to the $100,000 mark, hitting $99,683. However, short-term traders began booking profits, pulling the coin to $90,032 earlier this week. The good news is the bulls protected the $90k crucial support and have pushed BTC above $97,000 as of this writing.
Analysts Expect Altcoins to Lose Their Gains if Bitcoin Fails to Cross $100k
Meanwhile, Hundal says altcoins will find it difficult to retain their gains if BTC continues trading below $100,000. He points to Solana’s recent price performance, in which the token gained 13% on November 21st but plummeted 14% over the next six days.
Even top meme coins by market capitalization have seen a similar pattern. For instance, Pepe rallied 92% to $0.000025 after it was listed by Robinhood and Coinbase early this month. However, it has slid to $0.00002017 at press time, according to data from CoinMarketCap.
Nonetheless, Hundal is optimistic that Pepe can rally significantly like Dogecoin in the previous cycle. But for that to happen, he says Bitcoin dominance must decline. According to the crypto analyst, if Bitcoin dominance drops while the market caps of altcoins increase, it will mean that capital is leaving Bitcoin and flowing into other coins. As such, Pepe and other other crypto assets could record massive gains.
Will Bitcoin Dominance Drop Next Month?
As of this writing, Bitcoin dominance stands at 58.6% per data from TradingView. Hundal expects that figure to go up at least 67% before it begins to fall. Crypto trader Mikybull, on the other hand, believes Bitcoin dominance has started to plunge and could drop by huge margins in December.
While Hundal is optimistic that money will flow into altcoins when Bitcoin reaches $100,000, CryptoQuant CEO Young Ju thinks otherwise. He argues that the current BTC rally is fueled by institutional investors with zero interest in rotating their capital to other assets.
