Thursday, May 23, 2024

Jacob Canfield predicts that Bitcoin (BTC) will continue to lead the crypto market until the approval of a BTC spot ETF, with BTC potentially reaching $48-$50k, while Ethereum (ETH) lags behind.
Altcoins are expected to rise after a decrease in Bitcoin’s dominance, with a focus on Layer 1 coins, AI tokens, and gaming-related projects.
Canfield advises focusing on projects that align with Bitcoin’s trends, noting the influence of Ethereum on altcoin prices due to growing institutional interest.

Bitcoin Might Dominate for a While
Well-known trader Jacob Canfield has been emphasizing Bitcoin recently, suggesting that ETH will continue to trail behind Bitcoin until a significant announcement is made – the approval of a BTC spot ETF.
Canfield informed his followers that Ethereum ($ETH) is expected to continue lagging behind Bitcoin ($BTC) until the announcement of an Exchange-Traded Fund (ETF), as indicated by a chart comparing ETH to BTC.
The investor stated that a hypothetical approval could lead to Bitcoin reaching a local peak at $48-$50k, followed by consolidation within an 8-10% range. Canfield also anticipates that ETH/BTC will reach a local bottom with a capitulation candle below support and then begin to recover.

$ETH will most likely continue to lag behind #bitcoin until the ETF announcement as shown in this chart of eth vs btc.
Then we will see a local blow-off top for $BTC around $48-$50k and it will likely consolidate in an 8-10% range.
ETHBTC will probably then form a local bottom… pic.twitter.com/69eF178ZMw
— Jacob Canfield (@JacobCanfield) December 5, 2023

Altcoins Will Rise After a Break in Bitcoin Dominance
Many analysts and crypto traders have been speculating about altcoins as soon as Bitcoin’s dominance decreases. According to data from TradingView, this metric remains well above 50%, representing a 30% year-to-date increase.
A significant indicator preceding an altcoin season is a decline in Bitcoin dominance, as traders seek alternative assets for higher returns. Canfield believes that altcoins have experienced the most activity when Bitcoin consolidated in the $36k-$39k range, which included rotations between Layer 1 coins, AI tokens, and gaming-related projects.
The investor sees this as just the beginning of a substantial altcoin rally. However, he advises his followers to recognize that Bitcoin will dominate the market for a while, absorbing liquidity, and suggests identifying projects and coins that move in sync with Bitcoin for now.
Most altcoin projects are based on Ethereum, so when the price of ETH increases, the prices of these altcoins typically follow suit. The rising institutional holdings of Ethereum have intensified the attention on ETH’s price movements, indicating a significant factor influencing the altcoin market.
The post This is When Bitcoin (BTC) Will Top During the ETF-Driven Rally: Analyst appeared first on CryptoPotato .

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