Following the trend we’ve been seeing since the BTC top in mid December, altcoins keep generally growing while BTC suffers it’s consolidation phase.
Fundamentals of the sector hasn’t changed, the worldwide crypto-gold rush remains intact and for now, the megabullish trend too.
What can we expect for the coming times? Well, as I see it there are 2 possible scenarios for the coming weeks:
- BTC keeps consolidating in the 11500$-17000$ area to break over ATH some weeks later (4-8 weeks). During this period (mid January + February) altcoins would likely keep growing and pumping quite hard like they’re starting to do. There’s another variant in this theory that is that BTC breaks the range upwards 17k in a little time (2-3 weeks) and altcoin rallies get suspended until BTC finds another stable price range. Anyways, if that was the case altcoins would likely remain stable in $ values and likely grow too, because the altcoins bottom relatives to BTC prices are IN.
- BTC goes south and closes down the KEY 11500$ level with attitude. If that happened, that would be a really bad news because BTC would most likely keep dumping to the 7-8k zone and that would have unpredictable consequences. Logic says that altcoins would grow even more if that was the case, but that’s not really true, since all correlations alts/BTC we’ve had since 2015 have been having in mind that BTC cannot drop further 50% it’s previous ATH. So yeah, it’s a real possibility that in the day that BTC would break the support altcoins would drop big too, producing a true short term bloodbath in the streets.
Anyway, if we have all factors in mind: The way altcoins have been recovering, the way BTC support has been held, the collapse of global exchanges due to insane demand and the coming good fundamental news on the sector, the possibility 2 seems not very likely to happen, but it’s important to have it in mind.