dailyhodl.com
Altcoins may be about to witness a major market shift if Bitcoin (BTC) breaks a certain level, says closely-followed crypto analyst Nicholas Merten.
In a new strategy session, Merten tells his 461,000 subscribers that the news of El Salvador embracing Bitcoin as legal tender could be the catalyst that sparks a new narrative favoring the world’s flagship crypto asset.
Should Bitcoin regain a stronger narrative, the analyst says he may rotate some capital from altcoins back into BTC.
“We might return back to a much more kind of simple but also exciting narrative of Bitcoin, the gold standard of crypto coming back into the fray and people looking at it as a new emerging store of value. That’s what I think is possibly upon us here, and I got to be honest here, in this case, that’s probably going to mean I’m doing some capital rotations.
I’m really keen to see what happens here over the next couple [of] days because I think we’re going to get a defining price move in either Bitcoin or altcoins that’s going to really signify if my theory is wrong or that if I’m right in this case, that the trend is about to shift big time.”
Merten names one crucial price level for Bitcoin where the narrative could start changing and a big market shift could occur between altcoins and BTC. According to him, it may be time to start taking profits on your riskier altcoin holdings if Bitcoin moves above $42,000.
“I think that begins somewhere between $40,000 to $42,000. That’s the contesting range here for price. If you can break beyond that range, and altcoins don’t start outpacing Bitcoin, I would say it’s probably time to run for the hills on those very exponential returns you made on Shiba Inu token if you’re lucky enough to get them.”