The crypto market is currently experiencing a divergence between Bitcoin and altcoins. A CryptoQuant analyst suggests that this presents a potential accumulation opportunity for those who view the current downturn as a temporary correction. The analysis focuses on the difference between the 30-day and 365-day moving averages to gauge market capitalization growth. Small and mid-cap altcoins have underperformed and experienced a decrease of 1% compared to the wider crypto market, while large-cap altcoins typically follow Bitcoin's corrections with higher volatility. Historical data shows that small and mid-cap altcoins tend to rebound strongly when conditions improve. Investors can consider accumulation and portfolio reallocation strategies, but it remains to be seen if this correction will lead to a significant buying opportunity. Traders and investors are closely monitoring Bitcoin's price movements for signs of recovery.
Bitcoin, Solana and Crypto Markets Likely in ‘Classic Bear Trap’ Before Euphoric Move: InvestAnswers