Bitcoin Is Breaking New ATH, Altcoin Tests ‘Dead Cat Bounce’ Resistance. Here’s what you need to know:

The post Bitcoin Smashes New ATH, While Altcoins Test ‘Dead Cat Bounce’ Resistance: What You Need to Know appeared first on Coinpedia.

Surprisingly, the price of Bitcoin soared above $68,600 in the early hours of trading, which led to a sharp decline and its current value plummeting to more than $1,500. On the technical side, the bears are dominant, with BTC price trading around $66,600. However, this downward trend may not last much longer as it appears to be convincing itself that it will reach a new milestone any time within the next 24 hours.

Moreover, altcoins are also showing similar price movements. This follows a bull market in 2021 that suggests cryptocurrency market capitalizations, excluding Bitcoin, are on the cusp of a massive explosion. In 2021, the altcoin approached the bear market ‘Dead-Cat Bounce’ resistance zone as BTC price was about to hit a new ATH near $69,000. Therefore, a huge gap of over 140% has formed between Bitcoin and altcoins.

A similar trading setup appears to be repeating itself now, which could lead to a bullish explosion setting up a strong alt season soon.

This chart was shared by an anonymous analyst. CryptoBullet This indicates that altcoin market caps are approaching another ‘Dead-Cat Bounce’ resistance level. Moreover, there is currently a gap of over 60%, which increases the likelihood of seeing similar price movements in the future. After the BTC price hits a new ATH, the altcoin is expected to gain mainstream attention, which could surpass Bitcoin. Therefore, the analyst believes:

“Every time BTC tests ATH, alts start going berserk and outperform Bitcoin by far.”

This is expected to accelerate liquidity flows from Bitcoin to other altcoins as BTC dominance approaches the edge of the rising wedge. As a result, a modest pullback could provide an opportunity for altcoins to expand and thrive to reach the milestone of a $2 trillion market cap.