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YouTube’s most popular Bitcoin analyst just issued a warning that altcoins are ripe for a pullback.
In a new episode of DataDash, crypto analyst Nicholas Merten says the altcoin market cap is about to hit a key level that will likely signal a short-term retracement.
“As much as altcoins have been on a great uptrend since back here in early May, we have gone from around 31% dominance to 36.5%, so basically adding 5.5% dominance in the market and growing a sizeable share. I think it is at a time period here in the short term that we are probably going to see a cool down here over the next few weeks.
Taking a look here at the weekly chart, we are entering towards a very key percentage level. That is around 38% here. Why is 38% or the upper 37% range important? It’s where we set the last time over here back in February where we topped down altcoin dominance. It is also where previous support was back here in September 2018 and May of 2019. Also, you can see back here during the heat of the altcoin cycle where there was crazy volatility, crazy upward moves, and downward moves. This is generally where altcoins peaked out at the first cycle – in this case in 2017 – and then also built a base to continue the second cycle going into January of 2018.
So this is a very significant level here and I think again after a great rally here, we are probably going to see some kind of pullback.”
While Merten is bearish on altcoins in the near term, he believes two groups of cryptocurrencies will spearhead the charge of the next altcoin cycle. He believes those who fail to hop on the emerging trends will miss out.
“If you’re not focusing on the right trends and the right plays in the right industries, you’re going to lose out guys, plain and simple…
There are enterprise use cases and most importantly, there are financial applications. That’s why decentralized finance [and] enterprise blockchain, they will be the two centerpieces. Maybe there will be something else that we don’t know about, but those will be the two centerpieces for this upcoming cycle.”
Featured Image: Shutterstock/camilkuo