The recent Bitcoin (BTC) pullback below $40,000 has dragged almost the entire altcoin industry in the past 24 hours leading to Tuesday. The sudden drop in the crypto price has resulted in the liquidation of more than $247 million from leveraged traders.
The heightened selling pressure emanates from Bitcoin, whereby crypto whales have sold more than 70k BTC coins in the past two weeks worth around $3 billion. Meanwhile, cash distribution to the altcoin market has increased, especially after Bitcoin’s dominance reached a crucial resistance of around 54 percent.
Altcoin Season on the Horizon
With the spot Bitcoin ETF frenzy gradually disappearing on the horizon, the altcoin market is preparing for a robust rebound after a successful breakout in the past few months. Ideally, the altcoin season will be marked by the continued rise of the ETH/BTC pair after a successful rebound in the past weeks.
Furthermore, the ETH/BTC pair on the hourly time frame has been consolidating in a bullish pennant that could break out anytime. Crypto analyst Captain Faibik expects a 25 percent spike in the ETH/BTC pair soon.
MATIC Price Action
As a leading Ethereum-based layer two scaling solution with more than $821 million in Total Value Locked (TVL), Polygon (MATIC) is well-positioned to experience an upsurge after a successful ETH/BTC breakout. According to Captain Faibik, MATIC’s price could rally as much as 600 percent in the coming months.
Meanwhile, the MATIC bulls face several headwinds, including heightened competition from other layer two scaling solutions like Arbitrum and Optimism.
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