Analyst Identifies Potential 30x Opportunity as Altcoins Attract Liquidity

Analysts are observing a significant momentum in Bitcoin (BTC), anticipating a shift in liquidity towards altcoins. While some experts point out the growth limitations of Bitcoin, others see potential for 30x returns with certain altcoins, cautioning against settling for mere 30% profits.

Finbold has noted that numerous analysts and trading professionals are predicting an upcoming “altcoin season,” with various indicators supporting this notion. Traders are actively building positions in robust cryptocurrencies while utilizing the Bitcoin Dominance Index (BTC.D) as a reference point.

Recently, analyst Andrei Sobolev shared insights regarding Bitcoin’s trend and the expected influx of liquidity into altcoins. On November 8, Sobolev analyzed TradingView’s Crypto Total Market Cap Excluding BTC Index (TOTAL2).

Key Insights

• According to Sobolev, TOTAL2 is nearing the end of a corrective “Wave 4,” set to enter an impulsive “Wave 5” for altcoins. This analysis follows a validated prediction from September 5, with a target for TOTAL2 reaching a $2 trillion market cap.

• Sobolev noted that as liquidity accumulates, the dominance of $USDT will decrease, leading to an increase in the TOTAL2 chart.

30x Altcoin Opportunity

In a prior post, Sobolev reiterated his belief that liquidity will flow into altcoins, emphasizing BTC.D as a key indicator for portfolio investors to determine optimal entry and exit points.

• He stated, “Bitcoin is confidently breaking through ATH, soon liquidity will start to flow into altcoins. (…) The best benchmark for portfolio investors is BTC Dominance.”

Sobolev cautioned investors against taking profits at just 30% gains from altcoin investments. He highlighted that many investors who faced losses in the past two years might be tempted to cash out at these gains, potentially missing out on larger opportunities that could yield returns of up to 30x.

• He referenced MultiversX (EGLD), which previously surged by 3,000% within 90 days during the last altseason. Sobolev advised waiting for Bitcoin dominance to reach 40% before making profit-taking decisions.

MultiversX (EGLD) Overview

As of the latest update, EGLD was trading at $25.91, with predictions suggesting it could surpass the $1,000 mark. If Sobolev’s expectations hold true, MultiversX may present another 30x opportunity as liquidity shifts towards altcoins.

• The layer-1 blockchain has garnered attention for its fundamental strengths. Staking EGLD and exploring its decentralized finance (DeFi) features could enable investors to earn passive income and benefit from yield farming.

Research from Messari and insights from CyberCapital’s CIO have labeled EGLD as the “technological Holy Grail of crypto.” Additionally, CoinDesk highlighted MultiversX’s decentralization through a unique experiment of running a network node on a smartphone.

As developments unfold, The Kobeissi Letter has indicated multi-market signals suggesting the onset of a bull market, a sentiment echoed by Ari Paul, CIO of BlockTower Capital, who predicts a rally lasting six to twelve months.

Conversely, Ki Young Ju has advised new investors to exercise caution with Bitcoin, suggesting it may only rise another 30 to 40%. He noted that while Bitcoin could see gains, it would not replicate the previous significant increases.

Overall, many analysts are optimistic about the upcoming months, expecting notable performance from altcoins that may surpass Bitcoin during this altseason. However, amidst these promising prospects, there is a call for caution, emphasizing the need for a solid strategy to secure profits and mitigate risks.