Are the Altcoins Going to Dip in Short Term?

[EarnOnVictor]

-snip-
My reasoning is, the whales have dumped their Bitcoin on the institutional investors/Trads in recent months as the Bitcoin ETFs have become available, but they are only seeing bag holders on the alt-coin side, and not seeing newcomers to buy alt-coins from them in order to eventually dump them on the newcomers.

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

If you'd followed your mind on the day you opened this thread, you would have been happy now by saving your head from the pullback we are massively experiencing these days across the market board. This is well-expected because top altcoins have been pumping and pumping for too long, there is a need for them to observe the needed and due correction.

But you are wrong about the whales dumping Bitcoin, it's a collecting supply, because on the 15th of this month when you opened this thread, Bitcoin still tested $70,000 again, you can't compare it to what has been happening since then. This should not be a surprise to anyone since the market will surely face some supplies, it must not always be in demand as we witnessed it mostly since 2023, and at this time, many whales are still holding their Bitcoin, and the same goes for the institutions' holders and private individual with Bitcoin no matter the size. That's why the price is still very well above $60,000. If not, you might have seen it dropping lower than $30,000 pretty fast.

I can only wish you'd sold already at that time to reinvest later. Peradventure, if you did not follow your instinct then, you might not need it again because the altcoin might retrace a little lower before it starts climbing again to move even higher than where the recent correction started.

[tsaroz]

There are bound to be correction after sharp rise. That's what going on in the crypto market, bitcoin too is down to 65K from 70K and so are most altcoins.
But some altcoins are performing better and are increasing even in this correction phase. Every correction is a chance to accumulate cheap coins. As people buy and accumulate here, a support level is created which becomes for the next bull. Even though coins may seem to decreasing in short term, it is a preparation for even a larger bull in long term.

[Adbitco]

Market is facing a strong retracement and there is every likelihood for it to dip down to 30 percent from it original price, since the market hit another ATH that we didn't expect before even getting to bull run. After halving we can then see the market recovering gradually and we might see it doubling up the price from $73k+ to $150k though as market condition we can't give exact amount but based on speculation and market history since it always repeat itself therefore as an investor you should know when to hold or when to take profits.

[SamReomo]

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

I suggest you to sell 50% of your holdings and keep 50% for the high intensity of the bull run. The market is slowly recovering form the correction and I'm sure if it continues then things will be good once again and the market will go for another pump.

However, if it starts dumping then still you'll be safe from value drops because you have sold 50% of your holdings at good rate. You can utilize those funds again for accumulating more amount of the altcoins which will be much better in value during the high intensity of the bull run. In that sense you're in a win-win situation.

[Sophokles]

There are a lots of long positions between 50k and the top, so the market needs to shake off these positions for a healthy upward momentum. Otherwise, a long position with high leverage will earn a lot of profit which can be a concern for the exchanges. So they will try to liquidate those positions for sure, and in the process, whales will also try to take advantage of them. ETF inflow is also diminishing, so GBTC outflow will surely have a negative impact in the short term. They are still selling a lot of bitcoin every day.

[electronicash]

its scary to hold altcoins when the dip starts, altcoins are always going to dump more than BTC, you can see your funds draining as it happens that is why a lot are also starting to sell. i think this is just a short pullback. give it a few days you'll see it will rally again to 70k.

but if you are skeptical about this dip and you think it will go down to 40k as some technical analysis are saying, maybe convert your holdings to stablecoin for now. market still is unsure whether it will be before the halving.

[kamvreto]

Short-term declines will always occur, you can see how bitcoin has fallen to the $62,000 price area now, especially altcoins that depend on the price of bitcoin. A 30% decline is still very possible and this is an opportunity for you to increase your altcoin assets. repurchasing would be better and don't cut losses. Cutloss only gives you losses, if you can do good management you will certainly have spare money to buy back.

[KingsDen]

There are bound to be correction after sharp rise. That's what going on in the crypto market, bitcoin too is down to 65K from 70K and so are most altcoins.
But some altcoins are performing better and are increasing even in this correction phase. Every correction is a chance to accumulate cheap coins. As people buy and accumulate here, a support level is created which becomes for the next bull. Even though coins may seem to decreasing in short term, it is a preparation for even a larger bull in long term.

You have started it very nice and we all in this industry must have to understand that the movement of coins is just into ways; it is either going upwards or downwards at a time and it cannot go both sides at the same time. Also the market cannot continue to rise and rise forever without dropping. In the same vein the market cannot continue going down and down without rising. So when the market has risen so fast within a short period of time, it is safe that you should understand that the market will still need to cool down and correct to some certain extent. Bitcoin is correcting and so also will the altcoins do.

[Ben Barubal]

     Most of the altcoins actually passed a few days in correction or declining their price value. And there are many people who think that there is a problem, and someone just pumped, and now they dumped. Assuming that there is truth in what some say, but not all are like that. I agree with what I saw and noticed.

     Now, most of what I noticed about the top altcoins is that when there was a decline in Bitcoin, altcoins, meme coins, and NFT also followed. And I'm also sure that when the price of Bitcoin rises again, the price of altcoins will also rise.

[Oasisman]

Should we expect a relatively big pull back in the short term (30%+) with the top 50 alt-coins in the next two months?

I know the market appears to be in a mid-way bull market rally, but after a relatively strong upward movement recently, I feel like there has to be a temporary drop for the market to breath. Given that I wouldn't be paying taxes on these sales, and crypto doesn't have a wash sale rule like equities, I wanted to grab my profit and wait for this hypothetical pull back before investing again for a bigger gain down the road when we might see 5x - 10x by the end of this year, or early next year.

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

2 months for about 30% down? possibly yes, right after the bitcoin halving takes place, there could be a good chance for some alts to consolidate allowing investors to re-enter the market after a strong upward trend. A lot of them would be selling their bags just exactly what you're planning to do right now. However, that's actually gonna be a huge risk if you're not being able to buy back within that time frame. As we all know the next several months after the halving everything in crypto market goes crazy.
IMO, you're all good to sell now as long as you're satisfied with the profit, there's always gonna be a perfect time to buy back even lower than then 30% pull back and even outside that time frame you set, since you're planning for a long term investment. I'm not an expert of anything, that's just my 2 cents.

[Yogee]

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

I wonder if OP actually sold his portfolio four days after posting this and is starting to buyback now. Good job if he could time it properly but that's easier said than done. Other people may just let this pullback run its course and still DCA to take advantage of the "blood on the streets" if they still have the funds.

[Kristiyana]

     Most of the altcoins actually passed a few days in correction or declining their price value. And there are many people who think that there is a problem, and someone just pumped, and now they dumped. Assuming that there is truth in what some say, but not all are like that. I agree with what I saw and noticed.

     Now, most of what I noticed about the top altcoins is that when there was a decline in Bitcoin, altcoins, meme coins, and NFT also followed. And I'm also sure that when the price of Bitcoin rises again, the price of altcoins will also rise.

As of yesterday bitcoin price was declined to $62,000 even most of the altcoins like Dodgecoin, ethereum,bnb, matic,and some others was declined also,even till now bitcoin has not recovered from it current value.i think this is the right time to invest on bitcoin now that bitcoin has decreased to this value,what did you think guys?

[Juxoz]

I don't know where your assumptions are coming from. No one is dumping Bitcoin on anyone. What we've seen so far in the market is expected. It's called market correction. Those who got in early will always find a way of taking profit, either partially or completely with an aim to buy back cheap. This action of theirs can trigger paper hands to panic and dump without knowing why others are dumping. Anyone who's dumping Bitcoin now is doing themselves a disservice because Bitcoin is yet to experience its halving which is the main thing that makes price to skyrocket.

What I meant by dumping is that the Bitcoin whales were selling in mass to institutional investors because the demand had been strong.

[Juxoz]

had you made your mind few days ago you've already made the right call, the market does indeed corrected, even when bitcoin is rising up to $70k so many people are already predicting that there gonna be a pullback anyway you know its like tradition in crypto world whenever there's a bitcoin massive rally the correction always awaits at the end of the day.
therefore its kinda obvious.
but honestly this pullback just means more accumulation, if you successfully sold your altcoin at the peak, you can try to buy again to get massive profit since its obviously gonna climb up again anyway imagine a correction when the market sentiment is full of greed people are buying, thats why the pullback is not so massive.
but then again don't take this as a financial advice. but you should do analysation of your own.

Yes, but I am not trying to accumulate moving forward unless it's part of my Roth IRA account since I believe this cycle's highs will occur before April 2025, and I don't want to get clobbered by short-term capital gain rates. Whatever I've already bought in my taxable account in 2022/2023 will stay with me till I sell it for 20% tax rate. I just wanted to play with my tax-free account while we go through these emotions. Bull market 1 - 0 Me so far.

We'll just need to monitor to see how far it'll pullback for now ($45,000?). This cycle is actually turning out to be a bit more compressed, but ask me about this comment in two years, and I'll tell you how wrong I was. 

[Juxoz]

2 months for about 30% down? possibly yes, right after the bitcoin halving takes place, there could be a good chance for some alts to consolidate allowing investors to re-enter the market after a strong upward trend. A lot of them would be selling their bags just exactly what you're planning to do right now. However, that's actually gonna be a huge risk if you're not being able to buy back within that time frame. As we all know the next several months after the halving everything in crypto market goes crazy.
IMO, you're all good to sell now as long as you're satisfied with the profit, there's always gonna be a perfect time to buy back even lower than then 30% pull back and even outside that time frame you set, since you're planning for a long term investment. I'm not an expert of anything, that's just my 2 cents.

The investment in question is in a tax-free account which I can buy and sell repeatedly, therefore, I can take advantage of volatility of the market. The downside with these accounts are that the selection is limited and fees are higher than Defi or CEX (network+exchange). My long term investment is not going to be touched till we reached the euphoria stage.

[MFahad]

We'll just need to monitor to see how far it'll pullback for now ($45,000?). This cycle is actually turning out to be a bit more compressed, but ask me about this comment in two years, and I'll tell you how wrong I was. 

Well, the pullback looks pretty serious so far, it started when Bitcoin was at $73k and has already dropped down to $61k and it keeps going down. Though we can't be sure whether it will reach $45k or near that area or not, I'm pretty sure that we are going to see it going deeper than $55k at least before it starts recovering.
The halving event is still pretty far from where we are standing, a week's time should be enough for it to drop to those levels, if it takes longer than that and the halving arrives, it might start recovering right after the halving event.

[Juxoz]

-snip-
My reasoning is, the whales have dumped their Bitcoin on the institutional investors/Trads in recent months as the Bitcoin ETFs have become available, but they are only seeing bag holders on the alt-coin side, and not seeing newcomers to buy alt-coins from them in order to eventually dump them on the newcomers.

My dilemma is, should I sell now, wait for the short-term pull back, go back in and sell in the long term, or is this a foolish sentiment?

If you'd followed your mind on the day you opened this thread, you would have been happy now by saving your head from the pullback we are massively experiencing these days across the market board. This is well-expected because top altcoins have been pumping and pumping for too long, there is a need for them to observe the needed and due correction.

But you are wrong about the whales dumping Bitcoin, it's a collecting supply, because on the 15th of this month when you opened this thread, Bitcoin still tested $70,000 again, you can't compare it to what has been happening since then. This should not be a surprise to anyone since the market will surely face some supplies, it must not always be in demand as we witnessed it mostly since 2023, and at this time, many whales are still holding their Bitcoin, and the same goes for the institutions' holders and private individual with Bitcoin no matter the size. That's why the price is still very well above $60,000. If not, you might have seen it dropping lower than $30,000 pretty fast.

I can only wish you'd sold already at that time to reinvest later. Peradventure, if you did not follow your instinct then, you might not need it again because the altcoin might retrace a little lower before it starts climbing again to move even higher than where the recent correction started.

I think I used a wrong terminology here which has created some confusion for some of the readers. By dumping I meant whales selling to the willing buyers, a.k.a. institutional/trad investors, when demand was high in the first quarter of 2024. The inflow of these new investors has slowed, leading to the current correction. Whales are holding to whatever left of their Bitcoins which is still a massive amount in relative terms, but they did sell enough to ETF funds to get the party started.

And as the fairy tale goes... I didn't sell much. Only a few slow earners that hadn't done well since early 2023 relative to other coins. I was happy to get rid of them for 30% profit. My tax-free account is also relatively smaller to my long-term investment which will be dumped once we get closer to the end of this cycle (and I say that as if I have a magic 8 ball in my hand).

[Juxoz]

I really agree with the results of your analysis.  Indeed bitcoin has risen as high as possible and there will definitely be a correction.  But I think this correction is not significant.  We still see that the positive trend is still very high.  Especially with the Bitcoin halving plan in the near future and the ETF on ETH, this will again be the best moment in the crypto journey and big bullish will occur again.  I think your idea is very good to sell it now partly to keep the profit, and buy it again at a lower price.  However, you have to be careful and really do the analysis to look for other entry and exit points on your curve. All the best for you.

That's actually what I've been thinking. With halving around the corner, perhaps whatever correction we will have in late March to mid April will be short lived. Afterward, there is going to be a rise and time to sale alt-coins, and buy back when it pulls back more heavily afterward for another short-term slum.

[bluebit25]

The volatility of bitcoin/altcoins has been known for a long time, and speculation helps us anticipate eventualities. IMO, accumulating altcoins that have dropped sharply in price in the short term, the altcoin market has many projects competing with each other. Projects that do not have development potential or do not meet market needs may be overlooked by investors, leading to price drops. Some cases of market manipulation can cause altcoin prices to increase or decrease dramatically.

In the long term, such volatility stimulates many people to pay attention to crypto, and importantly, the main volatility is still from bitcoin. Before investing in any altcoin, investors should thoroughly research the project technology, development team and application potential.

[bitzizzix]

We'll just need to monitor to see how far it'll pullback for now ($45,000?). This cycle is actually turning out to be a bit more compressed, but ask me about this comment in two years, and I'll tell you how wrong I was. 

Well, the pullback looks pretty serious so far, it started when Bitcoin was at $73k and has already dropped down to $61k and it keeps going down. Though we can't be sure whether it will reach $45k or near that area or not, I'm pretty sure that we are going to see it going deeper than $55k at least before it starts recovering.
The halving event is still pretty far from where we are standing, a week's time should be enough for it to drop to those levels, if it takes longer than that and the halving arrives, it might start recovering right after the halving event.

The drop in Bitcoin has had a big impact on altcoins, and currently the price of Bitcoin is at $62K and is approaching $63K and I hope that the price of Bitcoin does not return to the price of $61K. Because if that happens and there is a decline below $60 there is a possibility that the price of Bitcoin will continue to fall by 50% from its highest price, but I don't hope that doesn't happen. However, after the halving, prices will rise again because we are almost close to it.
So in my opinion, the possibility of an altcoin decline still exists as long as the Bitcoin price does not reverse direction significantly.