The Bitcoin bull market is here, the asset is trading at nearly $30,000, and an awful year just came to a close – investors are in their right to be celebrating and having a little bit of fun with their profits. But one dark cloud hanging over altcoins for many months to come.
FUN Is Over: eventual breakout of altcoins across the rest of the market.
For example, Ethereum trades at roughly 50% of its former all-time high, while Bitcoin is 50% above its. The divergence has some shark-like investors searching for the right opportunity amidst the blood.
Related Reading | Bitcoin Dominance Doji: Why 2021 Could Spell Doom For Altcoins
Certain altcoins are exhibiting structures that look ready for a breakout against BTC, and one FunFair (FUN), an the entire rally was retraced, leading the crypto community to speculate over if pump and dump groups have returned to crypto. These groups coordinate efforts to artificially pump a FUNBTC on TradingView.com
The Other Side of The pump and dump group, a “whale call” alerting users to a massive sum of FUN tokens being moved could have tipped anyone off about the coming dump.
The fact such a large supply was moved suggests that this wasn’t the action of a pump and dump group, but a whale selling down the first sign of a major rally in the Analyst: Post Bitcoin, Traditional Finance Will Flock To DeFi, Not Ethereum
With altcoins still down so low, and potentially more danger ahead for the asset class as the SEC begins to stiffen regulations, whales could be waiting in the water, ready to liquidate their tokens as soon as they can.
Most only DeFi tokens and other new alts.
Featured image from Deposit Photos, Charts from TradingView.com