- Bitcoin price rally takes a breather as analysts recommend locking in profits ahead of a trend reversal.
- Analysts expect another leg up for the Solana rally, expect market capitalization to surge three times the current level of $34 billion.
- Traders rotate capital between layer zero and layer one solutions like Solana, Luna, Avalanche and Fantom, looking for the next Bitcoin or Ethereum.
Analysts suspect that the current price trend in Bitcoin is not as reliable and expect a second pullback to $44,300. Bitcoin's fear and greed index is at the edge of "greed" and "extreme greed." It is unclear where the cryptocurrency will head next.
Traders show a preference for Cardano, Solana and Terra as Bitcoin rally cools off
The "Altcoin Season Index" by blockchaincenter.net is an indicator that signals if altcoins are performing better than Bitcoin in a given year. If 75% of the top 50 altcoins by market capitalization perform better than Bitcoin over a year, it is an "Altcoin Year."
Currently, the index shows a skew toward altcoins over the past 30 days. Altcoins still have further room to catch up to Bitcoin on the yearly chart.
30-day chart of Altcoin Season Index.
August is an "Altcoin Month," and the current altcoin price action backs this result.
Cardano, Solana and Terra are leading the alt season with double-digit gains over the last two weeks. Analysts expect Cardano's price to make a strong comeback and hit a new all-time high ahead of the Alonzo Hard Fork that is scheduled to occur on the mainnet on September 12, 2021.
Setting higher targets for Cardano, the cryptocurrency analyst and partner at The Spartan Group behind the Twitter handle @SpartanBlack_1 predicted a threefold increase in the Solana market capitalization from the current level.
If $90B is the right valuation for $ADA, then $SOL is easily a 3X from here.
— SpartanBlack (@SpartanBlack_1) August 31, 2021