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Analyst Nicholas Merten aka Datadash said that Bitcoin needs to rise significantly for altcoins to do well. Without Bitcoin leading the way, altcoins are unlikely to see a bull market. For example BNB (Binance Coin) recently broke through a long-term support line—a critical level where buyers usually step in. But this time, it didn’t bounce back strongly, and that’s worrying, according to the analyst.
This isn’t just a BNB problem; other cryptocurrencies like Cardano (ADA) and Avalanche (AVAX) are facing similar issues. Take Cardano, for example. Despite being in the market for almost seven years, its total value locked (TVL) in stablecoins is just $13 million, compared to a market cap of $12.5 billion. That’s a huge discrepancy.
Similarly, Avalanche, which was a big name during the GameFi hype in 2021, is now struggling. Its market cap has dropped from $24 billion to around $7 billion, and stablecoin liquidity on its network is way down from its peak.
In his latest analysis video, Merten said that when you take a broader look at the altcoin market, a key metric to watch is the “Others” chart on TradingView. This chart tracks the market cap of all cryptocurrencies except the top 10, like Bitcoin and Solana. Why is this important? Because this is where the potential for massive returns lies. You’re unlikely to see a 10x return on Ethereum or Solana, but smaller altcoins could offer that kind of growth—if the market is moving in the right direction.
Altcoins have generally been in an upward trend since 2018, but recently, things have started to look shaky. He said that they are seeing resistance at critical levels like the 100-day and 200-day moving averages, which isn’t a good sign. If the market can’t break through these resistance points, it might mean we’re in for a rough ride.