While the altcoin market has shown a constant loss of value against Bitcoin over the last few years, there has been a notable change in this trend recently. As the long-term decline of the Alt/BTC parity slows down, consolidation appears to be coming to the fore in the markets. With this development, expectations that capital rotation may begin are strengthening among investors and analyst circles.
Consolidation in Alt/BTC Parity
The Alt/BTC ratio in the markets began to consolidate with a horizontal course after a long-term downward trend. Merlijn The Trader, known for technical analysis, points out in his current evaluation that this chart structure may be at the breaking point. Although it is too early to talk about a definite trend reversal in the current chart, it has been observed that there has been a significant pause in the selling pressure recently.
Change in Broad-Based Rally Expectations
Merlijn The Trader emphasizes that this period can be distinguished from the common “sub-seasons” of the past. Unlike previous periods, strong movements are not expected in the entire altcoin market at the same time. In his analysis, he points out that capital inflows may be directed mainly towards selected projects with certain characteristics.
It is stated that the prominent investment themes can be grouped under three headings:
- Projects focusing on usefulness
- Assets with deep liquidity
- Long-term projects that survive market cycles
This approach indicates that in more mature markets, sustainability and fundamental indicators may be more prominent than short-term expectations.
The Importance of Selective Investments is Increasing
It is stated that in this new process, wrong choices may not provide the returns expected from the market. Among the developments that attract the attention of the market, the possibility that projects that have a real usage area and have survived strongly in the past may perform better compared to other altcoins stands out. Market participants are now increasingly inclined towards products that exhibit long-term durability rather than short-term bullish expectations.
Merlijn The Trader, on the subject:
He points out that the coming phase may be based on disciplined positions and long-term solidity, rather than periods of speculative broad rallies.
In summary, the possibility of a new structural change is being considered in the altcoin market after long-term losses in value against Bitcoin. The view that comes to the fore is that the movement expected after consolidation may be based on selective and fundamentally based capital flows rather than widespread and short-term increases as in past cycles.
Although a definitive change in direction has not yet been confirmed in the alt/BTC charts, it is predicted that a remarkable break may come to the fore if the consolidation continues.
