The recent decline in Bitcoin (BTC) below $40,000 has hurt practically the whole altcoin market on the day before Tuesday. Leveraged traders have had to liquidate more than $247 million as a result of the abrupt decline in cryptocurrency prices.
The increased selling pressure is coming from Bitcoin, as over 70,000 BTC coins, valued at around $3 billion, have been sold by cryptocurrency whales in the last two weeks. Cash distribution to the altcoin market has surged in the meanwhile, particularly since Bitcoin’s dominance hit a critical 54 percent resistance level.
An Upcoming Altcoin Season
After a strong breakout in the last several months, the altcoin market is getting ready for a strong comeback as the spot Bitcoin ETF mania slowly fades into the distance. Ideally, the ETH/BTC pair will continue to increase following a strong rebound in recent weeks to signal the start of the altcoin season.
Moreover, the hourly time frame shows that the ETH/BTC pair has been consolidating into a bullish pennant that may break out at any moment. Captain Faibik, a cryptocurrency specialist, predicts that the ETH/BTC pair will shortly rise by 25%.
Polygon MATIC Price Action
With more over $821 million in Total Value Locked (TVL) as a top Ethereum-based layer two scaling solution, Polygon (MATIC) is well-positioned to rise following a successful ETH/BTC breakout. Captain Faibik predicts that in the upcoming months, MATIC’s price could increase by as much as 600 percent.
The Polygon MATIC bulls, however, are up against a number of challenges, including increased rivalry from alternative layer two scaling solutions like as Optimism and Arbitrum.