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Despite experiencing its fastest correction in the last 120 days, crypto traders are trying to capitalize on the widespread price drop, a Santiment post on X revealed. According to Santiment, the on-chain analysis tool, there has been a surge in “buy the dip” conversations between December 10 and the time of writing.
📉 #Crypto has experienced its fastest drop in 4 months as markets have corrected and caused mild trader concerns. There is a high level of #buythedip calls, which typically means that there is a bit of overeagerness and #FOMO on these low prices. https://t.co/cC2hJmSibv pic.twitter.com/9XjMbXfill
— Santiment (@santimentfeed) December 11, 2023
Altcoins Are Ready To Dominate
One reason market participants are interested in buying the dip could be connected to previous performances. A few weeks ago, when Bitcoin (BTC) slightly declined, altcoins recovered while climbing to new highs.
Crypto trader and analyst Rekt Capital mentioned that a retest could trigger a jump in the altcoin market cap. In the post, Rekt Capital noted that the market cap could jump to $425 billion.
The analyst backed up his point by referring to the historical performance that happened between June and November 2021, where a similar thing occurred.
$ALTS
— Rekt Capital (@rektcapital) December 10, 2023
First successful retest of red as support ($182bn) saw Altcoin Market Cap rally to $425bn within 2 months
Second successful retest of red saw Altcoin Market Cap rally to $425bn within 3 months
Altcoin Market Cap on the cusp of a third retest now#BTC #Crypto #Bitcoin pic.twitter.com/hrzIObzb7S
It is important to mention that Bitcoin’s dominance in the market has to drop for altcoins’ market capitalization to reach the said value. However, from TradingView’s data, BTC’s dominance was still 53.63%. This suggests that the number one cryptocurrency still has a lot of influence as per market direction.
If BTC dominance slips significantly, altcoins may take over and might foreshadow higher prices for Ethereum (ETH) and the rest of the altcoin category.
ETH To Take BTC’s Control Soon?
There have also been comments about the recent dip by other analysts. For instance, Michaël van de Poppe, founder of MN Trading, posted that BTC’s momentum was slowly shrinking. He also predicted that the drop could lead ETH to control market movement in the next quarter.
Markets do have corrections and with #Altcoins, they’ll be deep as markets are illiquid.
— Michaël van de Poppe (@CryptoMichNL) December 11, 2023
Don’t stress out. #Bitcoin momentum is slowly getting towards the end, through which #Ethereum is easily going to take over next quarter.
Van de Poppe also talked about altcoins on his YouTube page. According to him, the altcoin bull cycle was close, but he mentioned that ETH needs to break out to confirm the trend. “We can see that the hype around the spot Bitcoin ETF “is getting away, so the money flow cycle of altcoins can start,” he said in the video.
The analyst, during the session, mentioned that a potential spot ETF approval for Ethereum could also drive a spike in the altcoin price. However, he noted that this would only occur sometime in 2024.
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