Is the Bitcoin correction over? Which altcoins are the winners, which are the losers?
Last Updated on 21 March 2024 by CryptoTips.eu
During every Bitcoin bull run to date (the most famous ones being 2017-2018 and 2020-2021), investors have been confronted with pullbacks that can cut very deep into their original investment. A fall of 20% to even 30% from the top in a matter of days cannot be ruled out. Over the past week we saw a correction from the new top ($74,000) to the $60,000 support level, or about 20%.
These pullbacks are normal from a historical perspective. Whenever a pullback ends, it is important to note who the winners and losers are because if this is a bull run of a few months (or even years) then this is not the last time this will happen.
The fall of the Bitcoin price seems (at the time of writing) to be over and consolidation around $64,000 seems to be holding.
Is the correction over?
To answer that question we probably need more geopolitical news, such as an interest rate signal from the Federal Reserve or more purchasing data from the Bitcoin ETFs, but at first glance it seems that way. As long as the $60k support level is not broken, the support zone between $60,000 and $64,000 seems like a safe bet.
Who are the winners?
The Bitcoin correction started last Thursday and ended on Wednesday (or so we assume). Looking at CoinMarketCap’s top 20, we see that Solana (which briefly rose to $200) and Toncoin (which got good news from a possible Telegram IPO) did particularly well during that turbulent week. Avalanche also held up nicely.
This is no guarantee that these altcoins will climb faster when Bitcoin climb starts again, but it is an indication that it is a possibility.
Who are the losers?
The memecoins (Pepe, Bonk, Dogecoin, TokenFi, Floki) fell the fastest when the Bitcoin price was pulled down by the news from Japan’s interest rate decision and Bitcoin SV (Satoshi’s Vision) also had a few difficult days (mainly because a judge in London ruled that Craig Wright is definitely not Satoshi Nakamoto).
As far as memecoins are concerned, many new investors will have learned their lesson in terms of volatility and I expect that if the coming weeks become very bullish again due to a possible rise in Bitcoin, these small coins will rise slightly less quickly than they did last time. But perhaps my hope is in vain.
It was also striking that Ethereum fell faster than Bitcoin. Can Solana really take over Ether’s role in the future? The coming weeks and months will tell.
