Altcoins could be on the verge of seeing a major market shift if Bitcoin (BTC) breaks through a certain level, says closely-followed crypto analyst Nicholas Merten.
In a new strategy session, Merten tells its 461,000 subscribers that the news that El Salvador recognizes Bitcoin as legal tender could be the catalyst that sparked a new narrative favoring the world’s flagship cryptocurrencies.
Should Bitcoin regain a stronger narrative, the analyst says it may convert some capital from altcoins back into BTC.
“We could go back to a much simpler, but also more exciting, narrative of Bitcoin, the gold standard of crypto coming back into the fray and viewed by people as a newly emerging store of value. That is, I think, possibly coming here, and I have to be honest here, in this case it probably means doing some capital rotations.
I’m really excited to see what happens here in the next couple [of] Days because I think we’re going to get a crucial price move in Bitcoin or Altcoins that will really mean whether my theory is wrong or that, if I’m correct on this one, the trend is about to change a lot. ”
Merten names a crucial price level for Bitcoin at which the narrative could change and a major market shift between Altcoins and BTC could occur. According to him, it may be time to take profits on your riskier altcoin holdings when Bitcoin surges above $ 42,000.
“I think it starts somewhere between $ 40,000 and $ 42,000. That’s the competitive range here for the price. If you can cross that range and altcoins can’t overtake Bitcoin, I would say that if you are lucky enough, it is probably time to run high with those exponential returns you’ve made on Shiba Inu tokens to get them.
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Featured image: Shutterstock / Mia Stendal