As the week draws to a close, Bitcoin has been maintaining its price above $110,000. Meanwhile, major altcoins in terms of market capitalization have been moving sideways. While privacy-focused altcoins have come into the spotlight, insights from DaanCrypto suggest that profit-taking might be a prudent action for two specific altcoins. Lastly, we’ll consider the critical levels highlighted by Martinez for BTC.
The Surge of Privacy Coins: ZEC, DASH
The category of privacy-focused altcoins has experienced significant growth. The exact time and place of their peak remain uncertain. DaanCrypto draws attention to the short-term gains of altcoins like ZEN and DASH, suggesting that the enthusiasm in this sector might soon wane, leading to a possible downturn. ZEC has seen an increase of nearly sevenfold, marking it as the best performer in its category.
ZEC and other privacy coins have recently surged phenomenally.
The timing and location of their peak are unclear, yet I highlight the substantial performance of certain beta coins like ZEN and DASH in the short term. Often, when beta coins begin to outperform, it signals caution. This indicates that liquidity spreads thinner, which could weaken the leader and conclude the sector/narrative.
Hence, if you’ve invested in any of these, remember to secure some profits during this process.
If the momentum halts, profit-taking may accelerate, leading to steeper losses in charts than anticipated. Although DaanCrypto concedes the future is unpredictable, historical data might validate his warnings.
Spotlight on AI16Z (ai16z)
AI16Z (ai16z) presents an anomaly in its chart as noted by Altcoin Sherpa. It shows a pictorial consistency and experiences a steady decline. Sherpa noted that the decline might stabilize at $0.077, indicating support at that level.
Bitcoin (BTC) Levels of Interest
Ali Martinez still finds the current BTC price to be elevated. BTC hovers close to $111,000, and per the analyst’s chart, it is forming a new triangle. Martinez warns that before testing the resistance at $115,000, the support at $107,500 might be retested. This situation might further deepen the dips in altcoins that are already bottoming out.
