Altcoin Traders Face Tough Market as Bitcoin Holds Ground

• Daan Crypto Trades says most altcoins are too weak to trade and lack clear momentum.
• Bitcoin fell slightly, while altcoins dropped over 10% last week.
• Analysts suggest waiting for sector strength or Bitcoin’s final rally before reentering altcoins.

Popular market analyst Daan Crypto Trades has cautioned traders against chasing short-term altcoin opportunities in a market lacking sustained momentum. In a post on X, Daan noted that while Bitcoin (BTC) only declined slightly last week, most altcoins suffered significant losses.

He noted , “There’s not really any strong narrative or basket of coins outperforming,” making this a difficult environment for altcoin trading unless one is shorting the weakest assets.

He further advised traders to “chill” and wait until signs of sector-specific strength emerge. According to Daan, trying to force trades in a flat or declining market can lead to unnecessary losses, especially with summer approaching and historically thinner liquidity across the board.

BTC Resilience Exposes Altcoin Weakness

Daan’s observations are backed by market data. Bitcoin dropped just 3.55% over the past week, while altcoins like Dogecoin, Avalanche, and Sui plunged over 13%. The top ten coins show a pattern of outsized altcoin losses compared to Bitcoin’s stability. Avalanche fell 13.80%, Chainlink lost 13.10%, and Dogecoin slumped by 15.72%. These sharp declines reinforce Daan’s argument that there’s no reliable altcoin trend to follow at the moment.

Technical indicators also support a cautious approach. Bitcoin dominance has climbed to 64.21%, as shown in TradingView data, with no signs of a reversal. The Relative Strength Index (RSI) holds at 53.34, reflecting neutrality, while the MACD shows a weak bullish crossover, suggesting consolidation rather than a breakout.

Watch for Bitcoin’s Final Push Before Altcoin Recovery

Market analyst Crypto Dan of CryptoQuant echoes a similar message. He notes that altcoin investors have not realized significant profits this cycle, unlike in previous ones where capital rotated from Bitcoin into altcoins during late-stage rallies. He suggests that altcoin momentum may only return once Bitcoin reaches its final bullish peak.

In past cycles, Bitcoin dominance declined toward the end of bull runs, leading to an altcoin surge. For now, traders are urged to wait for those familiar signals rather than trying to front-run them. Patience may be more profitable than overtrading in a flat market. Until stronger narratives emerge or Bitcoin shows signs of topping out, most altcoins are likely to underperform.