05.05.202118:22 Forex Analysis & Reviews: Expensive bitcoin vs. less expensive altcoins

The medium-term forecast of bitcoin growth within the ascending channel 43,033.38 - 47,017.82 - 61,759.10 of February 28 has not lost its relevance. In the first four days of April, the main cryptocurrency fell, but today it regained all lost positions. BTC/USD remains flat at 52,929.55 - 57,513.35 between the two blue dotted lines and may soon break through its resistance.

At the same time, altcoins show more active dynamics. If we take a seven-day period, then during this time, bitcoin has hardly changed (at the time of writing, it has decreased by 0.02%), and ether has grown by 24.77%, updating its historical maximum and at the moment rising above $3,500. Litecoin is also gradually approaching its historical values. It rose 30.89% over the week.

It is becoming clear that with the high popularity of cryptocurrencies, investors have shifted their attention from bitcoin to less expensive altcoins. Although the price, in this case, is not the only argument.

Analysts from Arcane Research note that it is now the season of altcoins. And this is clearly seen in the Bitcoin dominance index. Now it has reached its lowest level in two years, and for the first time, it has dropped below 50%. From January to early May, this figure fell from 71% to 47%, which suggests that crypto enthusiasts are switching from BTC to alternative coins.

Arcane Research notes that one of the reasons for the shift in focus to altcoins is the growing interest in the DeFi space. Against this background, the price of ether and other tokens of DeFi projects skyrocketed.

The hype around Dogecoin, although it looks like a bubble, should not be discounted. Meanwhile, the coins of the Solana and Binance Smart Chain platform are particularly popular.

A similar situation was observed in 2017 during the bull market. During the moments of bitcoin consolidation, alternative coins were actively growing.

Against this bullish background, we can conclude that the sentiment of crypto investors does not subside, despite the correction of bitcoin. The shift in emphasis makes more affordable coins popular for retail investors.

Meanwhile, possible scenarios for bitcoin with the current technical picture will depend on whether its price can break through the local resistance level of 57,513.35 (blue dotted line) and gain a foothold above it. If so, then the path for growth into the mark of $61,000 per coin will be open. If the horizontal at 57,513.35 stops the price, the main cryptocurrency may once again return to support at 52,929.55 (blue dotted line).