With Bitcoin rallying higher, and ready to push through to a new all-time-high, price discovery awaits. Is this a train that investors will need to be on, or are the altcoins waiting in the wings ready to start eating into that Bitcoin dominance, as investors switch out in order to make perceived bigger gains?
In a YouTube video released today, Data Dash made the case for maintaining altcoin positions, suggesting that Altcoin dominance had reached a trend line and may be ready for a reversal back to the upside, with a target of 75% dominance as a medium to long-term goal.
Nicholas Merten states that unless there is a break-down below the trend line, and perhaps below the next support, then he will be keeping his alt positions going as is, in order to “not be caught two steps behind”.
Merten says that obviously there is a point where he would have to look to rotate alts into Bitcoin, and in his view, this is if the price loses the 51.4% altcoin dominance level.
He thinks that the current cycle will be a much longer one than most analysts are predicting, and that Bitcoin will top in late 2022, and that altcoins will have their top in Q1 of 2023.
He also believes that it is better to trade the broader cycle, and that with every new cycle it would be expected that altcoins will increase their dominance, given that new altcoins will enter the market and that new use cases will lead to more investment in them.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
