Mysterious cryptocurrency whale Kaleo expects a drop in the altcoin market as Bitcoin’s dominance level rises. The popular trader shares a few projects to follow at this point.
Kaleo warns altcoin investors amid rising BTC.D
Twitter analyst with 500,000 followers warned that altcoins could fall as Bitcoin’s dominance level rises. Kaleo, a major crypto whale, says that BTC.D will still dominate.
BTC.D is a metric that shows how much of the total value of the crypto market belongs to Bitcoin. A rising BTC.D chart shows that Bitcoin is gaining faster than altcoins. The dominance ratio is currently pushing past 10-month highs.
Regarding BTC.D, Kaleo said: “Bitcoin Dominance has continued to rise after the mini-bottom rally we saw after the Shanghai boost. BTC.D is breaking above the channel with no clear resistance up to ~52%, the target range we’ve been discussing since December.”
Kaleo’s warning was something to consider due to the volatility and unpredictable nature of the crypto market. The analyst also states that increasing dominance will draw liquidity from the altcoin market to Bitcoin.
These coins can track Bitcoin
According to Kaleo, the increase in Bitcoin’s dominance will open the year for altcoins’ losses. However, he points out that altcoins can still rise in dollar value.
Kaleo states that Ethereum will fall further against Bitcoin in the short term. At this point, he mentioned that Ethereum had a nice rally after the Shanghai update. However, Kaleo, who later stated that it fell steadily, still expects a decrease towards its December 2022 targets. The analyst says he expects to see some momentum as BTC climbs from $30,000-40,000.
ETH/BTC is down 1.3% in the last 24 hours at 0.064 ($1,923). Looking at the chart, Kaleo predicts that ETC/BTC will drop below $0.056 before making a bounce.
Another altcoin on the analyst’s radar: Injective (INJ)
According to Kaleo’s claim, Injective Protocol (INJ) is showing a rise similar to Bitcoin’s strong performance. It also fluctuates inconsistently. The analyst predicts that INJ will exceed the $10 level.
Kaleo said that he has been focusing on movements in the crypto market for a long time. He shares that he finally got an opportunity to participate in the INJ rally. The analyst states that INJ’s chart pattern on the lower timeframe is similar to the altcoin rallies seen in 2021. He says this reminds him of the investments he made in the cryptocurrency market that year.
Kaleo’s comments were an indication of how INJ would perform in the market in the near future. But before making any investment decision, it’s important to do your own research and consider the risks. INJ price is currently trading in the $8.45 region, where it is down 2.8% on the day.
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