Analyst Suggests Altcoin Recovery May Follow Bitcoin’s Final Cycle Stage—Here’s Why

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Bitcoin continues to show resilience in the current cryptocurrency market cycle, constantly stable new records while many altcoins remain below their previous peaks.

Currently exchanging just more than $ 104,000, Bitcoin recently tracked down by its maximums of all time over $ 111,000, established last month. By contrasting the constant growth of Bitcoin, Ethereum and other important Altcoin still have to overcome the historical maximums that have achieved several years ago, highlighting a considerable divergence in market performance.

This divergence was a focal point among analysts, pushing a deeper examination of the behavior of investors and capital flows between Bitcoin and Altcoin. Recent intuitions of the DA’s Analyhist Analyhist suggest that while Bitcoin remains dominant, the situation for Altcoin could move to the next phase of the cryptocurrency market cycle.

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Bitcoin investors’ behavior suggests potential movement in advance

The cryptoquate Crypto Dan analyst recently explored the largest implications of this Bitcoin dominated cycle in his market commentary. According to Dan’s analysis, the previous market cycles generally saw a gradual reduction in Bitcoin’s investments from medium-long while investors redistributed to Altcoin.

Bitcoin has made hats.
Bitcoin has made hats. | Source: cryptoquant

This movement traditionally guided the Altcoin significantly higher, usually marking the late phases of a bullish cycle. However, this cycle has a different model.

The frequent minor corrections of the Bitcoin price are followed by more significant and acute recessions for Altcoin, which demonstrate persistent weakness. Crypto Dan observes that currently few Altcoin investors have made significant profits, an unusual circumstance compared to previous cycles.

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Despite this continuous difficulty for Altcoin owners, the analyst maintains optimism, underlining that historical models suggest that Bitcoin domain generally decreases towards the end of each cycle.

If the story repeats itself, Altcoin could experiment with highly substantial movements while the cycle approaches its maturity. Therefore, while Altcoin currently undergoing, investors are advised to maintain patience until Bitcoin’s momentum reaches its last bullish thrust, potentially reporting a turning point.

Bitcoin price graphics (BTC) on Tradingview
The BTC price is moving upwards on the 2 -hour graph. Source: BTC/USDT on TradingView.com

Balena’s activities suggest the arrival attention of Altcoin

By completing this perspective, another Cryptoquant analyst, Maartunn, has provided insights on Stablecoin’s inflows to important exchanges.

In particular, Maartunn stressed that over 75% of Tether (USDT) deposits in Binance, monitored through the TRC-20 network, originating from large wallets, commonly known as whales, from November 2023.

This substantial concentration of whale activity suggests that the main market participants prefer binance for significant capital movements involving Stablecoin.

The remarkable affluent guided by whales to the herbal could indicate the preparation of substantial market activities, including potential bitcoin purchases or a possible movement to Altcoin.

Historically, the stablecoin deposits of large owners precede the increase in volatility and commercial activity, since whales are strategically positioned in anticipation of the change of the market.

Foreground image created with Dall-E, Tradingview graphic designer

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