Altcoin season on the horizon? On-Chain Data Suggests a Positive Outcome for Altcoins – Coinpedia – Fintech & Cryptocurreny News Media
Although Bitcoin has regained its $20,000 range and is trading slightly above the $21,000 level, the leading cryptocurrency is still 75% below its all-time high.
On the contrary, there are some positives to be seen around altcoin trading. Altcoin price movements around the crypto space show a bullish outlook for the crypto space.
Right now, Bitcoin is trading at $21,522 down 0.09% in the last 24 hours.
according to cryptoquantification, a crypto trading data provider, activity in terms of altcoins has increased on most crypto exchanges. When on-chain data is considered, the environment around Bitcoin is not that attractive. This also signals that there is instead an increase in the accumulation of whales.
After Bitcoin experienced a bearish pull for more than a month, now the flagship coin has entered a recovery phase and is struggling to stay in the range. However, this is not the reason for an increase in altcoin accumulation by whales.
Possible Reasons for Increased Altcoin Activity
The first possible reason could be due to over-the-counter trade with other whales through custodian services. The next reason CryptoQuant looks at is that whales open long or short positions where altcoins are used as security.
Meanwhile, upcoming altcoin projects on crypto exchanges and the liquidation of crypto hedge funds could also be serving up more crypto activity. However, these factors might not be the exact reason for an increase in altcoin buying because whales are not very likely to deposit their assets on exchanges at these prices.
On the contrary, whenever there is an increase in altcoin accumulation, there is a high possibility that a bottom will be reached. As the price of Bitcoin is struggling to see a bull run and the crypto winter has yet to calm down, the price of Bitcoin is expected to drop in the coming days. However, the slight increase in the price of Bitcoin relieved altcoin investors.
Was this writing useful?
source: coinpedia.org
