Large crypto investors appear to be positioning themselves for an upcoming altcoin bull season, according to the latest blockchain data. This accumulation could herald massive gains for Bitcoin alternative coins in the months to come.
Warning signals of an altcoin rally
Blockchain analysts have identified several indicators suggesting interest According to blockchain data analyst Santiment, the largest Bitcoin wallets have significantly reduced their positions in recent months. “Whale” wallets holding between 1,000 and 10,000 BTC have reduced their holdings significantly.
At the same time, transactions of more than $100,000 in Bitcoin have fallen considerably, a sign that large investors are temporarily turning away from the queen of cryptos.
Conversely, Ethereum whales have accumulated massively in recent months. Wallets holding more than 10,000 ETH have added nearly 22 million ether to their reserves over the last 14 months.
A similar movement is observed on XRP, where large wallets of more than 10 million units have stored an additional 3.17 billion XRP over the past year and a half.
The time for altcoins has come…
These massive flows of institutional investors seem to indicate an imminent change in trend. After months of overwhelming Bitcoin dominance, the altcoin season appears poised to restart.
From a technical point of view, the dominance of BTC compared to the rest of the crypto market has just broken a long-term upward trend. A signal typically heralding a rotation towards altcoins.
The ETH/BTC pair is also testing the resistance of a multi-year bearish channel, suggesting an imminent rally for Ethereum against Bitcoin.
With the recent approval of the first spot ETFs on Ether in Hong Kong and the United States, many investors are positioning themselves on the jewel of Ethereum for the coming months.
In short, all signals are green for a powerful upcoming rally in altcoins, after the massive accumulation in recent months by major investors in the sector.
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